Have you ever really looked at your credit card and tried to figure out what that huge string of numbers really means? Do these card issuers have so many customers that your account number has to be 16 digits long?
You may be surprised to know that all those numbers you see actually do stand for something, and it's not just who YOU are. Let's take a look.
Most of the major credit card companies operate on the same system when choosing a credit card number. Other cards like gas cards, department store cards and phone cards go their own way. Let's concentrate on the ones that all play by the same rules.
The very first digit in the series will be a 3,4,5, 0r 6. This number designates the type of card as follows:
3 = a Travel & Entertainment Card like American Express or Diners Club.
4 = Visa and Visa-branded debit cards, cash cards, etc.
5 = MasterCard and MasterCard-branded debit cards, cash cards, etc.
6 = Discover
American Express and Diners Club use the second digit to identify the company. That means that Diners Club cards will start with either "36" or "38", and American Express cards will use either "34" or "37".
The remaining numbers in the series are used for different purposes depending upon the card type and issuer.
In most cases, the next group after the opening series of numbers represents the routing number of the card-issuing bank, the group after that is the user's account number, and the final digit is a check digit. The check digit is a number that is calculated by applying a special formula to all of the other numbers. The check digit is the result of that formula and is used as an anti-fraud check.
To keep things from getting too confusing, look at your card as you follow along for the next steps.
American Express
The American Express Card uses digits three and four for type (business or personal) and the currency of the cardholder's country of origin. The next digits from the fifth through the eleventh are account numbers. Digits twelve through fourteen indicate the card number within the account and the last digit is the check digit.
Visa
With Visa, digits two through six represent the bank number. Beginning with the seventh digit and running through the twelfth or the fifteenth represents the account number and the last number is the check digit. Since all Visa cards do not have the same amount of numbers in the sequence, the number of digits in a group may vary.
MasterCard
For MasterCard, the second digit, through to anywhere between the third and the sixth digit is the bank number. All remaining digits, except the check digit at the end of the series, identifies that cardholder's account.
Now that we've gone over it all, you're probably wondering why you were ever wondering in the first place. Just remember though, knowledge is power. Some things are just fun to know.
About the author:
Gordon Goh is the owner of Easy-Credit-Card-Guide.com offering free credit card information for everyone. You can receive a free credit card at http://www.easy-credt-card-guide.com
Friday, July 25, 2008
Apply For A Credit Card Merchant Account Online
Who should ? Why, you should, of course, if you want to grow your business and maximize sales volume! In this day and age, more and more business functions are moving into cyberspace, which means that business owners must be ready to travel to this relatively unknown domain if they want to maintain strong customer ties and stay a step or two ahead of the competition. Don’t worry if you’re not Web savvy; most online processes that are geared to the general consumer are not hard to perform. In fact, most are downright easy.
First, find a lender that you respect that is willing to extend you a credit card merchant account online. This may be the bank where your business interests and accounts currently reside. Or you may choose to shop for another lender with better rates or services. Don’t rush into this decision, however. Plan some time in your schedule to carefully browse the many services offered through a host of financial institutions today. You can browse the Internet by typing in search phrases like “merchant account” or “merchant services” and seeing what Google or your favorite search engine can bring up. Then it becomes a matter of checking out each lender to find the one that will best fit with your business budget or growth objectives. Some companies may seem a little too shady, while others may not have been in business long enough to enjoy a solid reputation. Others may charge a frightful amount for the services you want. Ask around your local business community to see which merchant account providers others are using, and then compare those costs and services with those you find online. You can probably reduce your list to a few of the better underwriters in short order. Then you will need to make the final selection by comparing monthly and annual fees.
Applying for a credit card merchant account online is fast and easy. Just click on the lender’s home page link to “application” (or some variation thereof) and follow the links to the application page. Then type the requested information in each blank. Contact the customer service representative if you do not understand a question or if you are unsure how to answer it. Remember to print a copy of the application if you are able to do so, or keep a copy of the confirmation number if one is provided. Often a company will email a verification of your application’s receipt and tell you when to expect a reply. At least print this page, if nothing else, for your records.
After applying for a credit card merchant account online, sit back and wait to hear about the decision. Often this arrives within a few days or even hours by email, although some are mailed out by post. When you receive approval and open your merchant account, you can begin to accept credit card payments right away. You will be delighted to see how quickly your profits increase as customers begin taking advantage of this valuable service. Don’t wait—consider applying today for your credit card merchant account online.
About the author:
Shane Penrod is the founder of http://www.Merchant-Account-Quotes.comSpecializing in allowing merchants the ability to shop and compare multiple quotes from national merchant account providers. For free quotes on merchant account rates and fees, please go to http://www.merchant-account-quotes.com
First, find a lender that you respect that is willing to extend you a credit card merchant account online. This may be the bank where your business interests and accounts currently reside. Or you may choose to shop for another lender with better rates or services. Don’t rush into this decision, however. Plan some time in your schedule to carefully browse the many services offered through a host of financial institutions today. You can browse the Internet by typing in search phrases like “merchant account” or “merchant services” and seeing what Google or your favorite search engine can bring up. Then it becomes a matter of checking out each lender to find the one that will best fit with your business budget or growth objectives. Some companies may seem a little too shady, while others may not have been in business long enough to enjoy a solid reputation. Others may charge a frightful amount for the services you want. Ask around your local business community to see which merchant account providers others are using, and then compare those costs and services with those you find online. You can probably reduce your list to a few of the better underwriters in short order. Then you will need to make the final selection by comparing monthly and annual fees.
Applying for a credit card merchant account online is fast and easy. Just click on the lender’s home page link to “application” (or some variation thereof) and follow the links to the application page. Then type the requested information in each blank. Contact the customer service representative if you do not understand a question or if you are unsure how to answer it. Remember to print a copy of the application if you are able to do so, or keep a copy of the confirmation number if one is provided. Often a company will email a verification of your application’s receipt and tell you when to expect a reply. At least print this page, if nothing else, for your records.
After applying for a credit card merchant account online, sit back and wait to hear about the decision. Often this arrives within a few days or even hours by email, although some are mailed out by post. When you receive approval and open your merchant account, you can begin to accept credit card payments right away. You will be delighted to see how quickly your profits increase as customers begin taking advantage of this valuable service. Don’t wait—consider applying today for your credit card merchant account online.
About the author:
Shane Penrod is the founder of http://www.Merchant-Account-Quotes.comSpecializing in allowing merchants the ability to shop and compare multiple quotes from national merchant account providers. For free quotes on merchant account rates and fees, please go to http://www.merchant-account-quotes.com
Consumer AdviceWhat is identity theft?
What is identity theft? (NC)—Identity theft occurs when someone uses your personal information without your knowledge or consent to commit a crime, such as fraud or theft.
Once they steal the information and manipulate it, identity thieves can invade your personal and financial life. They can use stolen identities to conduct spending sprees, open new bank accounts, divert mail, apply for loans, credit cards, and social benefits, rent apartments and even commit more serious crimes which, once arrested, they pin on their new identity.
ID thieves get your personal information by:
• Stealing personal and private information from wallets, purses, mail, your home, vehicle, computer, and Web sites you've visited or e-mails you've sent.
• Retrieving personal information in your garbage or recycling bin by "dumpster diving".
• Posing as a creditor, landlord or employer to get a copy of your credit report.
• Tampering with ATM and terminals at stores, which enables thieves to read your debit or credit card number and PIN.
• Buying the information from a dishonest employee working where personal and/or financial information is stored.
• Removing mail from your mailbox.
• Searching public sources, such as newspapers (obituaries), phone books, and records open to the public (professional certifications).
For more information on how to protect yourself from ID theft, and other common consumer scams, visit ConsumerInformation.ca . It's a Web site created by federal, provincial, territorial governments and their partners specifically to provide Canadians with convenient, one-stop access to hundreds of objective, reliable, current consumer information sources.
- News Canada
About the author:
News Canada
Once they steal the information and manipulate it, identity thieves can invade your personal and financial life. They can use stolen identities to conduct spending sprees, open new bank accounts, divert mail, apply for loans, credit cards, and social benefits, rent apartments and even commit more serious crimes which, once arrested, they pin on their new identity.
ID thieves get your personal information by:
• Stealing personal and private information from wallets, purses, mail, your home, vehicle, computer, and Web sites you've visited or e-mails you've sent.
• Retrieving personal information in your garbage or recycling bin by "dumpster diving".
• Posing as a creditor, landlord or employer to get a copy of your credit report.
• Tampering with ATM and terminals at stores, which enables thieves to read your debit or credit card number and PIN.
• Buying the information from a dishonest employee working where personal and/or financial information is stored.
• Removing mail from your mailbox.
• Searching public sources, such as newspapers (obituaries), phone books, and records open to the public (professional certifications).
For more information on how to protect yourself from ID theft, and other common consumer scams, visit ConsumerInformation.ca . It's a Web site created by federal, provincial, territorial governments and their partners specifically to provide Canadians with convenient, one-stop access to hundreds of objective, reliable, current consumer information sources.
- News Canada
About the author:
News Canada
How To Avoid Being A Victim Of Ebay Buyer’s Fraud.
From everything you’ve heard about the risk of fraud on eBay, you might think it’s only buyers getting scammed – but you couldn’t be more wrong. Here are a few common scams that sellers fall for every day.
The Rubber Cheque.
This one obviously isn’t limited to eBay – it’s been going on for years in all kinds of business. It works like this: a buyer sends you a cheque that they don’t have the funds to cover and you pay it in your bank. You then send the goods right away, only to find out a few days later that the cheque bounced.
The solution to this is simple: don’t send anything to a buyer until their payment has cleared, no matter how quickly they might say they need it. Advise them to pay electronically if they don’t want to wait so long for their items. Then again, if your items are quite small, you could just take the loss from an occasional bounced cheque. Think of it as a small price to pay for faster and better customer service.
‘I Never Bought Anything!’
This is one of the riskiest scams to fall victim to. In this case, the credit card’s real owner still has control over it – no-one has stolen their details. They have realised, however, that they can phone up the bank who issued their card to say that it’s being used fraudulently and they never bought any such thing, and the bank will often reverse the transaction without even investigating. The only way to beat this scam is to make all your sales through eBay, as they keep a record of transactions.
The Unconfirmed Address.
It is quite easy to steal PayPal accounts from inexperienced users: all you need, after all, is their email address and password. PayPal tries to protect against credit cards registered on stolen accounts being used to buy things by listing a ‘confirmed address’ for each buyer – an address that matches what is registered with their credit card issuer.
What many scammers will do is ask you to ship to a different address – unless you’re very sure of them, this is a bad idea, as they could be trying to commit credit card fraud. Be especially suspicious of anyone who wants to pay a higher price and get overnight shipping, especially if not even to the same country as the confirmed address. The fraudster is trying to make sure the item reaches them before they are discovered.
It’s up to you to take responsibility for fraud on PayPal, as eBay’s favourite way to refund fraudulent payments to their rightful owner is to just reverse it from you! This is considered an occupational risk of PayPal usage, and sellers who get burned severely sometimes go as far as moving to a rival electronic payment service. See http://www.nopaypal.com for more.
In the next email, we’ll take a closer look at PayPal, and ask: should it be the only kind of payment you accept?
About the author:
Kirsten Hawkins is an Ebay and internet auction enthusiast from Nashville, TN. Visit http://www.auctionseller411.com/for more great tips on how to make the most from Ebay and other online auctions.
The Rubber Cheque.
This one obviously isn’t limited to eBay – it’s been going on for years in all kinds of business. It works like this: a buyer sends you a cheque that they don’t have the funds to cover and you pay it in your bank. You then send the goods right away, only to find out a few days later that the cheque bounced.
The solution to this is simple: don’t send anything to a buyer until their payment has cleared, no matter how quickly they might say they need it. Advise them to pay electronically if they don’t want to wait so long for their items. Then again, if your items are quite small, you could just take the loss from an occasional bounced cheque. Think of it as a small price to pay for faster and better customer service.
‘I Never Bought Anything!’
This is one of the riskiest scams to fall victim to. In this case, the credit card’s real owner still has control over it – no-one has stolen their details. They have realised, however, that they can phone up the bank who issued their card to say that it’s being used fraudulently and they never bought any such thing, and the bank will often reverse the transaction without even investigating. The only way to beat this scam is to make all your sales through eBay, as they keep a record of transactions.
The Unconfirmed Address.
It is quite easy to steal PayPal accounts from inexperienced users: all you need, after all, is their email address and password. PayPal tries to protect against credit cards registered on stolen accounts being used to buy things by listing a ‘confirmed address’ for each buyer – an address that matches what is registered with their credit card issuer.
What many scammers will do is ask you to ship to a different address – unless you’re very sure of them, this is a bad idea, as they could be trying to commit credit card fraud. Be especially suspicious of anyone who wants to pay a higher price and get overnight shipping, especially if not even to the same country as the confirmed address. The fraudster is trying to make sure the item reaches them before they are discovered.
It’s up to you to take responsibility for fraud on PayPal, as eBay’s favourite way to refund fraudulent payments to their rightful owner is to just reverse it from you! This is considered an occupational risk of PayPal usage, and sellers who get burned severely sometimes go as far as moving to a rival electronic payment service. See http://www.nopaypal.com for more.
In the next email, we’ll take a closer look at PayPal, and ask: should it be the only kind of payment you accept?
About the author:
Kirsten Hawkins is an Ebay and internet auction enthusiast from Nashville, TN. Visit http://www.auctionseller411.com/for more great tips on how to make the most from Ebay and other online auctions.
Improving Your Financial Situation With Investments and Business Ideas
With financial information and virtual business transactions just a click away, people are finding themselves more financially savvy and in the know on how to fatten up their financial portfolios.
While most people rely on banks and properties to secure their retirement days, others who are smart enough and worldly enough with the affairs of the green buck opt for more lucrative financing opportunities. They do not just let their money sit idly inside a bank vault and wait for the interest to add up. A few actually roll their money and invest them in the high stakes of stocks, bonds and currency.
Stocks can be very risky but if you start small and give yourself time to get the hang of it, you may enjoy it and may even discover that you have the gift of foresight. Watch for stocks that are just on the rise. These are often companies that are very promising. Their value will still be relatively small compared to blue chips so you really don’t have to shell out much. If you want to risk more, you can actually buy blue chips or those stocks that established companies offer to the public. Examples are Microsoft and Dell.
Bonds on the other hand may have modest returns but they are probably the best and most secure of financial investments. Bonds come highly recommended and should not be absent in any financial portfolio.
Currencies are trickier to deal with as their value are affected by so many forces, local or within the country involved, regional and global. Though banks also offer currencies, most have high exchange rates. Others just buy but they do not sell, choosing to keep the currencies within the financing institution.
Debt is perhaps the single worst thing that you can do to damage your financial portfolio. Do not get the wrong idea, debt can be good when used the right way. In fact, successful businessmen have debts too. This is because they have their money tied up in other ventures that have a higher return of investments than the interest of the loans. After all, you cannot make money without having some money to begin with. So, if you feel that you can yield more money using the money that you got from a loan, then by all means, get a loan!
What should be avoided are debts that come from credit cards. Credit cards hold the highest interest rates in debts perhaps because the whole debt business is risky. Getting into deep credit card debt can mean paying a lifetime for the interest without even touching the principal. It is important that when you use the credit card, make sure that you pay on time and that you pay for the whole amount. Otherwise, you would find yourself slowly falling into a financial trap.
It will be risky but the fastest way you can earn big money is to venture on a business. Even something as small as operating a cafeteria in a factory or school or engage in buying and selling of goods over the Internet, can be a great start. With the advent of technology, it is even easier now than before, not to mention faster, to conduct financing and business transactions. You don’t even have to meet face to face. You just have to learn to communicate through emails and mobile phones.
This is not intended to give financial advice and professional advice is suggested before investing.
About the author:
David Arnold Livingston is an entrepreneur with many years of successful business experience. For financing options, he recommends you visit: http://www.financingltd.com/
While most people rely on banks and properties to secure their retirement days, others who are smart enough and worldly enough with the affairs of the green buck opt for more lucrative financing opportunities. They do not just let their money sit idly inside a bank vault and wait for the interest to add up. A few actually roll their money and invest them in the high stakes of stocks, bonds and currency.
Stocks can be very risky but if you start small and give yourself time to get the hang of it, you may enjoy it and may even discover that you have the gift of foresight. Watch for stocks that are just on the rise. These are often companies that are very promising. Their value will still be relatively small compared to blue chips so you really don’t have to shell out much. If you want to risk more, you can actually buy blue chips or those stocks that established companies offer to the public. Examples are Microsoft and Dell.
Bonds on the other hand may have modest returns but they are probably the best and most secure of financial investments. Bonds come highly recommended and should not be absent in any financial portfolio.
Currencies are trickier to deal with as their value are affected by so many forces, local or within the country involved, regional and global. Though banks also offer currencies, most have high exchange rates. Others just buy but they do not sell, choosing to keep the currencies within the financing institution.
Debt is perhaps the single worst thing that you can do to damage your financial portfolio. Do not get the wrong idea, debt can be good when used the right way. In fact, successful businessmen have debts too. This is because they have their money tied up in other ventures that have a higher return of investments than the interest of the loans. After all, you cannot make money without having some money to begin with. So, if you feel that you can yield more money using the money that you got from a loan, then by all means, get a loan!
What should be avoided are debts that come from credit cards. Credit cards hold the highest interest rates in debts perhaps because the whole debt business is risky. Getting into deep credit card debt can mean paying a lifetime for the interest without even touching the principal. It is important that when you use the credit card, make sure that you pay on time and that you pay for the whole amount. Otherwise, you would find yourself slowly falling into a financial trap.
It will be risky but the fastest way you can earn big money is to venture on a business. Even something as small as operating a cafeteria in a factory or school or engage in buying and selling of goods over the Internet, can be a great start. With the advent of technology, it is even easier now than before, not to mention faster, to conduct financing and business transactions. You don’t even have to meet face to face. You just have to learn to communicate through emails and mobile phones.
This is not intended to give financial advice and professional advice is suggested before investing.
About the author:
David Arnold Livingston is an entrepreneur with many years of successful business experience. For financing options, he recommends you visit: http://www.financingltd.com/
Do You Need Bad Credit Help
? Are you one of thousands with no
credit and no collateral to help secure approval, or you just
have extremely bad credit and no one wants to help you, and all
you hear is stories and more stories?
Bad credit is a term used to describe a poor credit rating.
Common practices that can damage a credit rating include making
late payments, skipping payments, exceeding card limits or
declaring bankruptcy. Bad Credit can result in being denied
credit.
Bad credit can result in a negative rating from the credit
reporting agencies. Many factors can contribute to someone
getting a "bad credit" rating, among these are non-payment of an
account or late payments over an extended length of time.
Whether non-payment of an account is willful or due to financial
hardship, the result can be the same, a negative rating which
will result in a low credit score. However, lenders are more
willing to work with individuals if the person contacts the
lender to let them know they are having problems meeting their
commitment to pay. 100% Online Debt Relief! No Phone Calls! You
must have at least $2,500 of total debt over two or more
accounts to qualify for our Help. Name, email, and Zip Code are
required. US Residents only. No phone call required - all
customer interaction is done online!
Christian Debt Consolidation Services Professional Debt
Consolidation with a Christian perspective. Lower monthly
payments. Reduce or Eliminate High interest rates. Apply now for
a FREE NO-OBLIGATION QUOTE!
Fast Loans Online by DrCredit We are currently able to provide
auto loans, mortgage loans, debt counseling, home equity,
refinance loans, debt consolidation loans, personal loans and
much more...
A credit score is defined as a statistical method of assessing
an applicant's credit worthiness. An applicant's credit card
history; amount of outstanding debt; the type of credit used;
negative information such as bankruptcies or late payments;
collection accounts and judgments; too little credit history,
and too many credit lines with the maximum amount borrowed are
all included in credit-scoring models to determine the credit
score.
Raising your credit score is possible. It's a well known fact
that lenders will give people with higher credit scores lower
interest rates on mortgages, car loans and credit cards. If your
credit score falls under 620 just getting loans and credit cards
with reasonable terms is difficult.
Here are five things that you can use to raise credit score.
1. Correct obvious mistakes.
Your credit score is what shows up in your credit report. Review
your reports from all three credit bureaus for accuracy once a
year as well as several months before applying for a loan.
Changing a mistake on your report can take 30 days to three
months, or more. Get Your credit report from the three major
bureaus: Experian, Trans Union and Equifax.
2. Pay Your Bills On Time
Your payment history makes up 35% of your total credit score.
Your recent payment history will carry much more weight than
what happened five years ago.
Missing just one payment on anything can knock 50 to 100 points
off of your credit score.
Paying your bills on time is the best way to get started
rebuilding your credit rating and raising your credit score.
3. Reduce your credit card balances.
A heavily weighted factor in your FICO score is how much money
you owe on your credit cards relative to your total credit
limit. Generally, it's good to keep your balances at or below 25
percent of your credit card limit, said Jeanne Kelly, founder of
The Kelly Group in Brookfield, Conn., which helps clients
improve their credit scores.
4. Don’t Close Old Accounts
In the past people were told to close old accounts they weren’t
using. But with today's current scoring methods that could
actually hurt your credit score.
Closing old or paid off credit accounts lowers the total credit
available to you and makes any balances you have appear larger
in credit score calculations. Closing your oldest accounts can
actually shorten the length of your credit history and to a
lender it makes you less credit worthy.
If you are trying to minimize identity theft and it's worth the
peace of mind for you to close your old or paid off accounts,
the good news is it will only lower you score a minimal amount.
But just by keeping those old accounts open you can raise credit
score for you.
5. Avoid Bankruptcy
Bankruptcy is the single worst thing you can do to your credit
score. Bankruptcy will lower your credit score by 200 points or
more and is very difficult to come back from.
Once your credit score falls below 620, any loan you get will be
far more expensive. A bankruptcy on your credit record is
reported for up to 10 years.
The reality of a bankruptcy is it will limit you to
high-interest lenders that will squeeze out high interest rate
payments from you for years.
It is better to get credit counseling to help you with your
bills and avoid bankruptcy at all costs. By getting credit
counseling instead of declaring bankruptcy you can raise credit
score over a much shorter period of time.
About the author:
Team-Schuman.Com contains the best make money online and make
money websites available today. If you want to make money check
us out here:
http://www.team-schuman.com/badcredit.html
credit and no collateral to help secure approval, or you just
have extremely bad credit and no one wants to help you, and all
you hear is stories and more stories?
Bad credit is a term used to describe a poor credit rating.
Common practices that can damage a credit rating include making
late payments, skipping payments, exceeding card limits or
declaring bankruptcy. Bad Credit can result in being denied
credit.
Bad credit can result in a negative rating from the credit
reporting agencies. Many factors can contribute to someone
getting a "bad credit" rating, among these are non-payment of an
account or late payments over an extended length of time.
Whether non-payment of an account is willful or due to financial
hardship, the result can be the same, a negative rating which
will result in a low credit score. However, lenders are more
willing to work with individuals if the person contacts the
lender to let them know they are having problems meeting their
commitment to pay. 100% Online Debt Relief! No Phone Calls! You
must have at least $2,500 of total debt over two or more
accounts to qualify for our Help. Name, email, and Zip Code are
required. US Residents only. No phone call required - all
customer interaction is done online!
Christian Debt Consolidation Services Professional Debt
Consolidation with a Christian perspective. Lower monthly
payments. Reduce or Eliminate High interest rates. Apply now for
a FREE NO-OBLIGATION QUOTE!
Fast Loans Online by DrCredit We are currently able to provide
auto loans, mortgage loans, debt counseling, home equity,
refinance loans, debt consolidation loans, personal loans and
much more...
A credit score is defined as a statistical method of assessing
an applicant's credit worthiness. An applicant's credit card
history; amount of outstanding debt; the type of credit used;
negative information such as bankruptcies or late payments;
collection accounts and judgments; too little credit history,
and too many credit lines with the maximum amount borrowed are
all included in credit-scoring models to determine the credit
score.
Raising your credit score is possible. It's a well known fact
that lenders will give people with higher credit scores lower
interest rates on mortgages, car loans and credit cards. If your
credit score falls under 620 just getting loans and credit cards
with reasonable terms is difficult.
Here are five things that you can use to raise credit score.
1. Correct obvious mistakes.
Your credit score is what shows up in your credit report. Review
your reports from all three credit bureaus for accuracy once a
year as well as several months before applying for a loan.
Changing a mistake on your report can take 30 days to three
months, or more. Get Your credit report from the three major
bureaus: Experian, Trans Union and Equifax.
2. Pay Your Bills On Time
Your payment history makes up 35% of your total credit score.
Your recent payment history will carry much more weight than
what happened five years ago.
Missing just one payment on anything can knock 50 to 100 points
off of your credit score.
Paying your bills on time is the best way to get started
rebuilding your credit rating and raising your credit score.
3. Reduce your credit card balances.
A heavily weighted factor in your FICO score is how much money
you owe on your credit cards relative to your total credit
limit. Generally, it's good to keep your balances at or below 25
percent of your credit card limit, said Jeanne Kelly, founder of
The Kelly Group in Brookfield, Conn., which helps clients
improve their credit scores.
4. Don’t Close Old Accounts
In the past people were told to close old accounts they weren’t
using. But with today's current scoring methods that could
actually hurt your credit score.
Closing old or paid off credit accounts lowers the total credit
available to you and makes any balances you have appear larger
in credit score calculations. Closing your oldest accounts can
actually shorten the length of your credit history and to a
lender it makes you less credit worthy.
If you are trying to minimize identity theft and it's worth the
peace of mind for you to close your old or paid off accounts,
the good news is it will only lower you score a minimal amount.
But just by keeping those old accounts open you can raise credit
score for you.
5. Avoid Bankruptcy
Bankruptcy is the single worst thing you can do to your credit
score. Bankruptcy will lower your credit score by 200 points or
more and is very difficult to come back from.
Once your credit score falls below 620, any loan you get will be
far more expensive. A bankruptcy on your credit record is
reported for up to 10 years.
The reality of a bankruptcy is it will limit you to
high-interest lenders that will squeeze out high interest rate
payments from you for years.
It is better to get credit counseling to help you with your
bills and avoid bankruptcy at all costs. By getting credit
counseling instead of declaring bankruptcy you can raise credit
score over a much shorter period of time.
About the author:
Team-Schuman.Com contains the best make money online and make
money websites available today. If you want to make money check
us out here:
http://www.team-schuman.com/badcredit.html
Friday, July 18, 2008
History of Royalbank
Royal was founded in 1963 as the Bank of King of Prussia to serve the local community. At that time, King of Prussia was a combination farming and residential community. Local residents grew fond of the personal service of the bank, referred their friends, and the bank grew.
In 1980 the management of the bank changed, and shortly thereafter, the bank was renamed Royal Bank of Pennsylvania in recognition of our broader service area. Our bank grew to offices in the greater Valley Forge area, Narberth, Philadelphia and Jenkintown. In 2004 the bank changed names to Royal Bank America.
Today Royal encompasses sixteen full-service branch offices throughout southeastern Pennsylvania and New Jersey under the name Royal Bank America and six locations throughout southeastern Pennsylvania, Northern New Jersey and New York City under the name Royal Asian Bank.
Together, Royal Bank America and Royal Asian Bank offer a wide variety of products and services including high-yielding CDs & MMAs, free checking solutions and Internet Banking tools such as BillPay and eStatements.
As the region's premier commercial real estate lender, a reputation earned over the course of 40+ years of innovative and aggressive financing, Royal has played a lead role in the redevelopment and growth of our communities.
In 1980 the management of the bank changed, and shortly thereafter, the bank was renamed Royal Bank of Pennsylvania in recognition of our broader service area. Our bank grew to offices in the greater Valley Forge area, Narberth, Philadelphia and Jenkintown. In 2004 the bank changed names to Royal Bank America.
Today Royal encompasses sixteen full-service branch offices throughout southeastern Pennsylvania and New Jersey under the name Royal Bank America and six locations throughout southeastern Pennsylvania, Northern New Jersey and New York City under the name Royal Asian Bank.
Together, Royal Bank America and Royal Asian Bank offer a wide variety of products and services including high-yielding CDs & MMAs, free checking solutions and Internet Banking tools such as BillPay and eStatements.
As the region's premier commercial real estate lender, a reputation earned over the course of 40+ years of innovative and aggressive financing, Royal has played a lead role in the redevelopment and growth of our communities.
Former Royal Bank America executive sentenced
A former Philadelphia-area bank executive was sentenced to one month in federal prison for his role in an influence-peddling scheme involving a suburban real estate developer, prosecutors said. Joseph Zakorchemny Jr., 57, of Aston, Pa. -- who was senior vice president of Royal Bank America -- was also ordered to forfeit $12,000 by U.S. District Court Judge James Giles.
The developer, Mark Alan Mendelson, 52, of Villanova, Pa., was sentenced Tuesday to two months in prison and a $1 million fine. Both Zakorchemny and Mendelson pleaded guilty in December to charges that they conspired to defraud a federally insured financial institution and engaged in bank bribery.
Prosecutors alleged that beginning in late 2004, Zakorchemny took a property the bank owned --196 Ridge Pike in Limerick, Pa. -- off the market for Mendelson to purchase for $2.4 million, knowing that Mendelson did not have the required $100,000 deposit. Prosecutors said that Zakorchemny and Mendelson falsely represented to Narberth, Pa.-based Royal Bank that the deposit had been made, using a bogus check that they both knew was not covered by sufficient funds.
Because Mendelson was unable to come up with the financing to buy the property, Mendelson and Zakorchemny agreed that the property would be sold to Limerick-Ridge Ventures LP, an entity owned and controlled by an attorney for Mendelson, according to prosecutors. Limerick-Ridge Ventures sold the property three months later at a profit of more than $2 million -- of which Mendelson received about $500,000, according to prosecutors.
In turn, prosecutors said Mendelson paid Zakorchemny about $12,000 in cash and gifts, including a casino stay, landscaping work and jewelry. Zakorchemny failed to report the payment to anyone of authority within Royal Bank and failed to recuse himself from matters affecting the financial interests of Mendelson and his businesses, prosecutors said.
Royal Bank (NASDAQ:RBPAA) of Narberth, Pa., has said it terminated Zakorchemny once the charges were filed but said the bank did not lose money because of the transaction since the property was sold for a price higher than the estimated value.
The developer, Mark Alan Mendelson, 52, of Villanova, Pa., was sentenced Tuesday to two months in prison and a $1 million fine. Both Zakorchemny and Mendelson pleaded guilty in December to charges that they conspired to defraud a federally insured financial institution and engaged in bank bribery.
Prosecutors alleged that beginning in late 2004, Zakorchemny took a property the bank owned --196 Ridge Pike in Limerick, Pa. -- off the market for Mendelson to purchase for $2.4 million, knowing that Mendelson did not have the required $100,000 deposit. Prosecutors said that Zakorchemny and Mendelson falsely represented to Narberth, Pa.-based Royal Bank that the deposit had been made, using a bogus check that they both knew was not covered by sufficient funds.
Because Mendelson was unable to come up with the financing to buy the property, Mendelson and Zakorchemny agreed that the property would be sold to Limerick-Ridge Ventures LP, an entity owned and controlled by an attorney for Mendelson, according to prosecutors. Limerick-Ridge Ventures sold the property three months later at a profit of more than $2 million -- of which Mendelson received about $500,000, according to prosecutors.
In turn, prosecutors said Mendelson paid Zakorchemny about $12,000 in cash and gifts, including a casino stay, landscaping work and jewelry. Zakorchemny failed to report the payment to anyone of authority within Royal Bank and failed to recuse himself from matters affecting the financial interests of Mendelson and his businesses, prosecutors said.
Royal Bank (NASDAQ:RBPAA) of Narberth, Pa., has said it terminated Zakorchemny once the charges were filed but said the bank did not lose money because of the transaction since the property was sold for a price higher than the estimated value.
Wednesday, July 16, 2008
Low Interest Credit Cards
A low interest credit card is recommended over other card benefits if you would like to finance your holiday shopping or a large purchase, or you desire to use a balance transfer to pay off higher interest loans.
Low interest cards can be a great deal, because in addition to long-term low rates, many offer a great introductory rate, typically ranging from 0% to 4.9% annually. The introductory rate may apply to balance transfers, purchases, or both, and it will extend from six months to more than twelve months. After the introductory period, the interest rate on low APR cards typically ranges from 7.25% to around 14.99%.
When you compare low APR credit cards, read the terms and conditions carefully and then weigh all of the above factors to find the card that best fits your needs. To qualify for a lowest interest credit card, you will generally need good to excellent credit rating. However, regardless of your situation, you can still find a low rate credit card that fits your profile. You may even find that your existing card company will lower the rate on the card you have, rather than lose you as a customer.
There are two types of rates on low interest credit cards: “fixed” APR and “variable” APR. If your low interest card has a fixed APR, your rate will, for the most part, remain the same. The credit card company may still change the fixed APR rate, but they will notify you in advance. With a variable APR, the rate on your low interest card is typically linked to the national prime rate; when it changes, your rate may too. If you plan on carrying a balance, a fixed rate is often the best way to go. If you want to transfer a balance, see our collection of cards with 0 APR introductory rates on balance transfers.
If you plan to regularly pay off your balance before the end of the month, you may instead be interested in looking at rewards credit cards that charge slightly higher interest rates, but offer incentives, such as cash back, or airline miles. We also feature a selection of business credit cards to choose from in each card category.
Platinum SkyMiles Credit Cards from American Express
Enjoy the following benefits: Earn 20,000 miles with your first purchase, 5,000 of which count as Medallion Qualification Miles (MQMs).
Experience the exclusive Pay with Miles benefit, allowing you to pay for all or part of Delta fares with miles.
Receive your enhanced complimentary* companion certificate for travel within the contiguous United States when you renew your card, now with no blackout dates and no minimum fare requirements.
Earn Always Double Miles® on eligible everyday purchases and all Delta purchases .
Business Credit Cardmembers get 5% savings on Delta purchases directly from Delta. Learn more.
Earn up to 20,000 MQMs toward Medallion status each year with built-in Miles BoostsSM.
Visit American Express for more details
and to apply for the Platinum SkyMiles personal Credit Card or the small business Credit Card.
*Additional taxes, fees, baggage charges and restrictions may apply. See credit card application page for details
Bank Cards
What we're calling 'bank cards' are also known as 'fake miles' cards and 'choose your own airline' cards.
They are bank-issued cards--typically MasterCard or VISA--with a travel awards program modeled on the airlines' frequent flyer programs. And they function very much like airline affinity cards: earn miles for purchases (usually 1 mile for every $1 charged); redeem miles for free tickets (a free domestic economy ticket can be had for 20 - 25,000 miles). The miles can also sometimes be combined with cash to secure a ticket.
In fact, calling the currency of bank cards 'miles' is misleading, since your earnings are based on dollar amounts charged, not distance traveled. Which is why some call them 'fake miles.'
Notwithstanding the surface similarities between bank cards and airline cards, the differences are real and substantial. First and foremost, the "miles" earned for bank-card charges are proprietary: they can ONLY be earned for charges made with THAT card. This severely limits your earning capacity--compared to miles awarded in an airline program, which can be earned for flights, hotel stays, charges with the program card, etc., etc. And of course, bank-card miles cannot be combined with your airline miles or hotel points.
On the award side, bank card programs claim two distinct advantages over the airline programs: (1) you can redeem your miles on any airline, and (2) there are no blackout dates for award travel. These benefits are possible because bank programs purchase award tickets on behalf of their members. And since they're revenue tickets, they aren't subject to the capacity controls airlines impose on their own award seats.
There are some important caveats to these programs, which may make them less generous and flexible than they appear at first blush. Consider the following typical policies:
The value of award tickets is capped. If, for example, you redeem 25,000 bank-card miles for a free domestic ticket, the maximum value of that ticket might be $500.
You must request your award ticket at least 21 in advance of travel. (This allows the bank card programs, through their travel agencies, to purchase discounted, advance-purchase tickets, thereby lowering their redemption costs.)
Given both the strengths and weaknesses of these cards' earning and awards, they are better suited to frequent buyers than to frequent flyers. If you travel often, you have more options for earning miles and awards through the airline-specific programs.
Here's a summary of the bank cards' pros and cons compared with the airline cards':
Delta Reserve Credit Cards from American Express
Enjoy the following benefits:
Earn 10,000 Medallion® Qualification Miles (MQMs) after your first purchase.
Earn Built-in Miles BoostsSM— up to 30,000 MQMs and 30,000 bonus miles.
Gift earned MQMs to friends and family, helping them reach elite status.
Receive complimentary Crown Room Club® access for you and two guests.
Receive upgrade priority over non-Delta Reserve Cardholders within Medallion level and fare class.
Experience the exclusive Pay with Miles benefit allowing you to pay for all or part of Delta fares with miles.
Receive free* annual domestic companion certificate upon renewal for a First-Class or Coach ticket.
Access Concierge services that cater to your needs while you travel.
The Delta Reserve Cardmembership annual fee is $450.
Visit American Express for more details and to apply for the Delta Reserve personal Credit Card or the small business Credit Card.
*Additional taxes, fees, baggage charges and restrictions may apply. See credit card application page for details.
Earn 10,000 Medallion® Qualification Miles (MQMs) after your first purchase.
Earn Built-in Miles BoostsSM— up to 30,000 MQMs and 30,000 bonus miles.
Gift earned MQMs to friends and family, helping them reach elite status.
Receive complimentary Crown Room Club® access for you and two guests.
Receive upgrade priority over non-Delta Reserve Cardholders within Medallion level and fare class.
Experience the exclusive Pay with Miles benefit allowing you to pay for all or part of Delta fares with miles.
Receive free* annual domestic companion certificate upon renewal for a First-Class or Coach ticket.
Access Concierge services that cater to your needs while you travel.
The Delta Reserve Cardmembership annual fee is $450.
Visit American Express for more details and to apply for the Delta Reserve personal Credit Card or the small business Credit Card.
*Additional taxes, fees, baggage charges and restrictions may apply. See credit card application page for details.
Saturday, July 12, 2008
Tips for businesses that accept credit cards
Let's face it, many businesses cringe when they think of dealing with banks when they are looking to set up merchant credit card accounts. The truth is that in order to be in business in this day and age as a merchant, you must be prepared to accept and process credit cards. Most especially if you do business over the Internet. If you are not prepared to offer a full array of credit card acceptance options, I'm afraid you will soon be out of business. The downside to accepting credit cards is that the merchant is at risk for not only the amount that has been charged, but a charge back fee as well.
The banks will take the disputed charge along with a chargeback fee directly from the merchants account and if the merchant does not have sufficient funds that have already cleared from paying their own bills, they will be hit with yet another charge which is known as an overdraft charge. It can become a vicious cycle. There are now more than a few banks that recognize that these charge backs are not always the fault of the merchant, and that indeed, most merchants are honest with their credit card dealings. I regret having to say that there is so much credit card fraud out there today, and because the merchant is always liable, you must take active steps to protect yourself and your business.
First of all, you must be careful to verify to the very best of your ability that the name, address and cvv number verification are all in good order. The business owner, or merchant, must be careful to verify the IP address of each and every transaction to make sure that it is within the approximate location of the cardholder. A red flag should go up if a person who lives in Des Moines, Iowa is suddenly making a charge in Boca Raton, Florida. This is your livelihood so the exercise of due diligence and caution are always of paramount importance.
Do not fall into the habit of becoming apathetic because as quickly as money is credited to your merchant account it can be taken away due to the charge backs that we discussed earlier. Now there are organizations who are working to try to change the banking and processing rules and regulations so that businesses that are both small and large will have some more protection against credit card fraud.
The time to begin protecting yourself and your business is right now. You need only pick up the newspaper, or read a news report, to know that the risk is very real and always present. Reports state that there are over 40 million credit cards in the hands of thieves and criminals who have no compunction about using these credit cards for any nefarious activities that they can dream up. That is why I have written this article. It is most certainly not my intention to scare anyone. I simply want to remind you of the dangers and risks associated with processing credit cards for your business.
About the author:
Morgan Hamilton offers expert advice and great tips regarding all aspects concerning Credit Cards.
Get the information you are seeking now by visiting http://www.Find-Cards-Now.com
The banks will take the disputed charge along with a chargeback fee directly from the merchants account and if the merchant does not have sufficient funds that have already cleared from paying their own bills, they will be hit with yet another charge which is known as an overdraft charge. It can become a vicious cycle. There are now more than a few banks that recognize that these charge backs are not always the fault of the merchant, and that indeed, most merchants are honest with their credit card dealings. I regret having to say that there is so much credit card fraud out there today, and because the merchant is always liable, you must take active steps to protect yourself and your business.
First of all, you must be careful to verify to the very best of your ability that the name, address and cvv number verification are all in good order. The business owner, or merchant, must be careful to verify the IP address of each and every transaction to make sure that it is within the approximate location of the cardholder. A red flag should go up if a person who lives in Des Moines, Iowa is suddenly making a charge in Boca Raton, Florida. This is your livelihood so the exercise of due diligence and caution are always of paramount importance.
Do not fall into the habit of becoming apathetic because as quickly as money is credited to your merchant account it can be taken away due to the charge backs that we discussed earlier. Now there are organizations who are working to try to change the banking and processing rules and regulations so that businesses that are both small and large will have some more protection against credit card fraud.
The time to begin protecting yourself and your business is right now. You need only pick up the newspaper, or read a news report, to know that the risk is very real and always present. Reports state that there are over 40 million credit cards in the hands of thieves and criminals who have no compunction about using these credit cards for any nefarious activities that they can dream up. That is why I have written this article. It is most certainly not my intention to scare anyone. I simply want to remind you of the dangers and risks associated with processing credit cards for your business.
About the author:
Morgan Hamilton offers expert advice and great tips regarding all aspects concerning Credit Cards.
Get the information you are seeking now by visiting http://www.Find-Cards-Now.com
Applying For A Credit Card With No Credit History – Tips You Need to Know
Oddly enough, not only will bad credit work against you when applying for a loan or a credit card, but no credit will too. Even though this doesn't seem fair, it is the way things work in the complicated world of consumer credit. Lenders are leery about opening accounts for people with no credit history because they simply have nothing to base your reliability on.
So, if you can't build a credit history without credit and you can't get credit without a credit history, just what has a person to do? It's nearly impossible to rent a car, stay in a hotel, or shop online without a credit card, so let's explore a few of the options that can eliminate this Catch-22.
Available Credit Options
Although many of the major credit card companies won't give you a card without a credit history, some smaller ones, like department stores, will. Find a department store that will issue you a card and apply for it. You can try getting a gas station card also. Either way, use your card but be sure to make all payments on time. Your goal is to build a good credit history, not just get a credit card.
Find a credit card company that will review your overall financial situation and not just your credit history. Some lenders will look at your employment history, your housing situation, and how often you have moved. If this is all on the up and up, they may approve your application. Again, use this card wisely.
Credit Unions
If you are a credit union member, or are eligible for membership, see what their card issuing terms are. Although they are no giving out cards with their eyes closed, they will often have more relaxed conditions for members. You no longer have to work for a specific company to be eligible to join a credit union. So it's well worth checking if there's one in your area.
Secured Credit Cards
Secured credit cards are offered by lenders who will give you a line of credit that either matches, or is slightly higher than, a cash deposit that you give them to hold. As your experience with the card grows, these lenders will often raise your limit without requiring you to increase your deposit. Eventually, you can use your experience with this lender to apply for cards that are not secured.
Student Credit Cards
If you are a student, then you'll be best off with a student credit card. Student credit cards can be a great way of building the credit history that you will need to depend upon after graduation. The important thing here is to remember to use that opportunity wisely. Many banks will issue college students a credit card, especially banks that are located in college or university cities and towns.
When you do manage to get a credit card, remember that you are establishing a credit history. Show that you are a good financial risk by paying the bill on time. Don't go crazy with the spending. It will only cause you problems in the future.
About the author:
Gordon Goh is the owner of Easy-Credit-Card-Guide.com offering free credit card information for everyone. You can receive a free credit card at http://www.easy-credt-card-guide.com
So, if you can't build a credit history without credit and you can't get credit without a credit history, just what has a person to do? It's nearly impossible to rent a car, stay in a hotel, or shop online without a credit card, so let's explore a few of the options that can eliminate this Catch-22.
Available Credit Options
Although many of the major credit card companies won't give you a card without a credit history, some smaller ones, like department stores, will. Find a department store that will issue you a card and apply for it. You can try getting a gas station card also. Either way, use your card but be sure to make all payments on time. Your goal is to build a good credit history, not just get a credit card.
Find a credit card company that will review your overall financial situation and not just your credit history. Some lenders will look at your employment history, your housing situation, and how often you have moved. If this is all on the up and up, they may approve your application. Again, use this card wisely.
Credit Unions
If you are a credit union member, or are eligible for membership, see what their card issuing terms are. Although they are no giving out cards with their eyes closed, they will often have more relaxed conditions for members. You no longer have to work for a specific company to be eligible to join a credit union. So it's well worth checking if there's one in your area.
Secured Credit Cards
Secured credit cards are offered by lenders who will give you a line of credit that either matches, or is slightly higher than, a cash deposit that you give them to hold. As your experience with the card grows, these lenders will often raise your limit without requiring you to increase your deposit. Eventually, you can use your experience with this lender to apply for cards that are not secured.
Student Credit Cards
If you are a student, then you'll be best off with a student credit card. Student credit cards can be a great way of building the credit history that you will need to depend upon after graduation. The important thing here is to remember to use that opportunity wisely. Many banks will issue college students a credit card, especially banks that are located in college or university cities and towns.
When you do manage to get a credit card, remember that you are establishing a credit history. Show that you are a good financial risk by paying the bill on time. Don't go crazy with the spending. It will only cause you problems in the future.
About the author:
Gordon Goh is the owner of Easy-Credit-Card-Guide.com offering free credit card information for everyone. You can receive a free credit card at http://www.easy-credt-card-guide.com
Free Credit Card Merchant Account
If you have been doing business for a few years, you probably have heard about the benefits of opening a free credit card merchant account to expand the availability of your products and services. However, there are so many banks and other financial institutions competing for your business that you may be unsure which one to partner with in this exciting venture. One attractive option is to look for a free credit card merchant account offer.
Applying for a merchant account is easy and often can be handled online in a few moments’ time. However, it may be difficult to know which bank to choose. One may offer a lower transaction fee for credit card processing. Another may vie for your business by offering a no-fee installation of credit card processing equipment. But you could benefit more from a free credit card merchant account if the card does not come with hidden fees or limits.
Start by shopping for a merchant account with banks that offer low-interest rate credit cards or a no-rate credit card merchant account. If your favorite bank does not currently offer this type of deal, ask about one. Perhaps they will consider offering you a special deal if you are a valued customer. Otherwise, when considering a merchant account credit card from a relatively unknown institution, compare the terms of the card to those from other banks to make sure you get the best deal.
Sometimes a “free” credit card deal may actually hide or incur unexpected costs. For example, while you may not have to pay any up front costs when opening the account, like an application fee, you may be billed later for an annual membership fee that entitles you to use the credit card. Failing to pay this fee may result in the cancellation of your credit privileges. A free credit card merchant account should be free in every sense of its use, so ask about contingency fees or possible changes in terms later on as the economy shifts. You don’t want to get comfortable using the card only to find in a few months that you are being billed for services you did not expect to pay for.
A free credit card merchant account can be just the thing to launch you into e-commerce use, however. You can use your credit account to purchase credit card processing equipment or other innovations that will upgrade your company’s image to impress customers and draw in new clients. Or you can use your free credit card merchant account to experiment with other marketing techniques, attend conventions, or try a new line of merchandise or services.
If you have demonstrated skill in using business credit responsibly and in keeping with your business income and expenses, this type of credit card account may be just what you need to move your business forward and expand company interests or operations for your customers’ benefit. Check out all the terms and conditions when you apply to get the best free credit card merchant account.
About the author:
Shane Penrod is the founder of Merchant-Acount-Quotes.com Specializing in allowing merchants the ability to shop and compare multiple quotes from national merchant account providers. For free quotes on merchant account rates and fees, please go to http://www.merchant-account-quotes.com
Does your business accept credit cards?
It has become increasingly important for businesses to be able to accept credit cards. Credit cards are the preferred method of payment nowadays. Whether you are an online merchant or own an on-site business, if you do not accept credit cards you are missing out on a lot of revenue.
To accept credit cards your business needs a credit card processing system. Creating a merchant account gives you that ability. Merchant accounts are accounts especially crafted to fit the needs of businesses to accept money.
If you own a store, you will need a card swipe terminal to accept credit card payments. Your merchant account provider may be able to provide you with this equipment. There will be a purchase fee or rent fee associated with the equipment. You can also shop elsewhere for point of sale equipment. POS terminal software can ease the processing of credit cards and can ease the job of a cashier at grocery stores, merchandise stores, bookshops, or any other type of store you own.
Once the equipment is in place you are ready to go. When a customer asks ‘do you accept credit cards?’ your answer will be a definite yes. At the Point of Sale terminal, customers can check out their items and pay by credit. You slide the credit card into the machine and it will automatically make the payment.
To accept credit cards is even more crucial for Internet merchants. If you only use checks to accept payments, it can be troublesome for customers to write and mail the check. Online payment methods such as Paypal and StormPay also have drawbacks since many people do not have accounts with them. These can be your secondary payment methods but it is important to be able to accept credit cards.
Different websites have different reasons to accept credit card payments. Some sites ask for a membership or subscription fee. Some sites may deliver tangible products where the payment gateway must be integrated with the shopping cart. Others may require a fee for online consumption of such things as music, movies, etc.
You will need an Internet merchant account to make a payment gateway on your e-commerce Website to accept credit cards. You have a great choice when it comes to selecting a merchant account. Things to look for when making your choice are:
- Fees, such as transaction, set up and charge back
- Reliable security features
- Professional customer support
- The Company’s reputation and stability
If you are not skilled in programming, you should seek a merchant account provider that will set up your payment gateway for you or provide a cut and paste code. Setting up the payment gateway, to accept credit cards, in the right place and integrating it into your e-commerce Website is essential to driving sales. The gateway must be secure and the payment processing time must be fast.
Why you must Accept Credit Cards?
For online purchases, a majority of customers pay by credit cards. Thus if you do not accept credit cards you have reduced your customer base tremendously. Also credit cards promote impulse buying. You do not want to give your customers time to rethink their purchase when they are writing a check with all those zeros.
Also it can add credibility and professionalism to your business. If you accept credit cards, your site will look more legitimate and customers will have greater peace of mind when making payments. Your payment processor will be working and making money 24 hours a day, even while you sleep.
The benefits of accepting credit cards are many, even for on-site businesses. Credit cards are a convenient way to make payments. Customers do not have to carry cash around. Just slide the card in the processor and the payment is done. The merchant can potentially see a great increase in sales.
About the author:
Jakob Jelling is the founder of http://www.cashbazar.comVisit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.
Circulated by Bandoni Media
To accept credit cards your business needs a credit card processing system. Creating a merchant account gives you that ability. Merchant accounts are accounts especially crafted to fit the needs of businesses to accept money.
If you own a store, you will need a card swipe terminal to accept credit card payments. Your merchant account provider may be able to provide you with this equipment. There will be a purchase fee or rent fee associated with the equipment. You can also shop elsewhere for point of sale equipment. POS terminal software can ease the processing of credit cards and can ease the job of a cashier at grocery stores, merchandise stores, bookshops, or any other type of store you own.
Once the equipment is in place you are ready to go. When a customer asks ‘do you accept credit cards?’ your answer will be a definite yes. At the Point of Sale terminal, customers can check out their items and pay by credit. You slide the credit card into the machine and it will automatically make the payment.
To accept credit cards is even more crucial for Internet merchants. If you only use checks to accept payments, it can be troublesome for customers to write and mail the check. Online payment methods such as Paypal and StormPay also have drawbacks since many people do not have accounts with them. These can be your secondary payment methods but it is important to be able to accept credit cards.
Different websites have different reasons to accept credit card payments. Some sites ask for a membership or subscription fee. Some sites may deliver tangible products where the payment gateway must be integrated with the shopping cart. Others may require a fee for online consumption of such things as music, movies, etc.
You will need an Internet merchant account to make a payment gateway on your e-commerce Website to accept credit cards. You have a great choice when it comes to selecting a merchant account. Things to look for when making your choice are:
- Fees, such as transaction, set up and charge back
- Reliable security features
- Professional customer support
- The Company’s reputation and stability
If you are not skilled in programming, you should seek a merchant account provider that will set up your payment gateway for you or provide a cut and paste code. Setting up the payment gateway, to accept credit cards, in the right place and integrating it into your e-commerce Website is essential to driving sales. The gateway must be secure and the payment processing time must be fast.
Why you must Accept Credit Cards?
For online purchases, a majority of customers pay by credit cards. Thus if you do not accept credit cards you have reduced your customer base tremendously. Also credit cards promote impulse buying. You do not want to give your customers time to rethink their purchase when they are writing a check with all those zeros.
Also it can add credibility and professionalism to your business. If you accept credit cards, your site will look more legitimate and customers will have greater peace of mind when making payments. Your payment processor will be working and making money 24 hours a day, even while you sleep.
The benefits of accepting credit cards are many, even for on-site businesses. Credit cards are a convenient way to make payments. Customers do not have to carry cash around. Just slide the card in the processor and the payment is done. The merchant can potentially see a great increase in sales.
About the author:
Jakob Jelling is the founder of http://www.cashbazar.comVisit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.
Circulated by Bandoni Media
Consumer Advice: Unwanted credit cards
Unwanted credit cards
(NC)—If you receive a credit card in the mail that you didn't order, here, according to information on Industry Canada's Consumer Information Gateway website, is what you should do:
Consumers are not liable for a credit card they did not request. However, you should destroy any unsolicited credit cards immediately. Using the credit card constitutes acceptance of the card. If you use the card, you will have to pay the bill. Similarly, do not cash small cheques that are sent to you without reading the small print. Doing so often locks you into paying for products or services you may not wish to buy.
For more information on unwanted credit cards, and other questionable marketing practices, visit ConsumerInformation.ca . It's a Web site created by federal, provincial, territorial governments and their partners specifically to provide Canadians with convenient, one-stop access to hundreds of objective, reliable, current consumer information sources.
- News Canada
About the author:
News Canada
(NC)—If you receive a credit card in the mail that you didn't order, here, according to information on Industry Canada's Consumer Information Gateway website, is what you should do:
Consumers are not liable for a credit card they did not request. However, you should destroy any unsolicited credit cards immediately. Using the credit card constitutes acceptance of the card. If you use the card, you will have to pay the bill. Similarly, do not cash small cheques that are sent to you without reading the small print. Doing so often locks you into paying for products or services you may not wish to buy.
For more information on unwanted credit cards, and other questionable marketing practices, visit ConsumerInformation.ca . It's a Web site created by federal, provincial, territorial governments and their partners specifically to provide Canadians with convenient, one-stop access to hundreds of objective, reliable, current consumer information sources.
- News Canada
About the author:
News Canada
The Key To Increasing Your Customer Base: Accept Credit Cards
Here is a tactic you should heed for your online business… accept credit cards. Whether you’re selling digital products or tangible goods through online channels, your business should be able to accept credit cards to ensure the widest customer base possible. The importance of the ability to accept credit cards cannot be denied. Being able to accept credit cards makes your online business more accessible to a greater number of potential clients and customers.
World Of Benefits When Your Online Business Accepts Credit Cards
Credit cards have been tagged as plastic money because they have become accepted as a good alternative to actual cash. A lot of people actually prefer real world establishments who accept credit cards. They would rather shop in stores that accept credit cards rather than those that don’t accept credit cards.
The same principle applies in online transactions. People would look for eCommerce sites that accept credit cards, particularly those that accept credit cards which they own. I you would be able to accommodate these people by designing your online business to accept credit cards, you’d be able to increase the number of potential customers you could gain.
Additionally, by building an online enterprise that could accept credit cards, you will be able to secure payment in a more convenient and safe manner. If your online business would accept credit cards from paying customers, you’d be empowering them to spend for your products.
Overcoming An Important Hump When You Accept Credit Cards Online
Sad to say, however, that there are quite a number of people who are afraid of online transactions, even if your business would accept credit cards. There have been tales of so many scams and fraudulent dealings on the Internet, and legitimate businesses which accept credit cards are the ones that have to suffer such stigma.
To help stem the tide of this fear, businesses that accept credit cards should ensure the following things:
* A business that would accept credit cards should make sure that its payment processing page is embedded with Secure Socket Layers (SSL) of at least 128 bit.
* A business that would accept credit cards should also make sure that such SSL encryption appears on the lower right side of the user’s browser window, in the form of a lock icon.
* A business that would accept credit cards should establish a responsive customer support system that would answer the needs of your clients when it comes to transactions involving the acceptance of credit cards.
Allowing your online business to accept credit cards could only expand your customer base and provide good profits for you for many years to come.
About the author:
Jeff Usher researches and writes articles on all aspects of Internet Marketing and eCommerce. For further information on the subject of this article please visit:-
http://www.more-merchant-account.info
World Of Benefits When Your Online Business Accepts Credit Cards
Credit cards have been tagged as plastic money because they have become accepted as a good alternative to actual cash. A lot of people actually prefer real world establishments who accept credit cards. They would rather shop in stores that accept credit cards rather than those that don’t accept credit cards.
The same principle applies in online transactions. People would look for eCommerce sites that accept credit cards, particularly those that accept credit cards which they own. I you would be able to accommodate these people by designing your online business to accept credit cards, you’d be able to increase the number of potential customers you could gain.
Additionally, by building an online enterprise that could accept credit cards, you will be able to secure payment in a more convenient and safe manner. If your online business would accept credit cards from paying customers, you’d be empowering them to spend for your products.
Overcoming An Important Hump When You Accept Credit Cards Online
Sad to say, however, that there are quite a number of people who are afraid of online transactions, even if your business would accept credit cards. There have been tales of so many scams and fraudulent dealings on the Internet, and legitimate businesses which accept credit cards are the ones that have to suffer such stigma.
To help stem the tide of this fear, businesses that accept credit cards should ensure the following things:
* A business that would accept credit cards should make sure that its payment processing page is embedded with Secure Socket Layers (SSL) of at least 128 bit.
* A business that would accept credit cards should also make sure that such SSL encryption appears on the lower right side of the user’s browser window, in the form of a lock icon.
* A business that would accept credit cards should establish a responsive customer support system that would answer the needs of your clients when it comes to transactions involving the acceptance of credit cards.
Allowing your online business to accept credit cards could only expand your customer base and provide good profits for you for many years to come.
About the author:
Jeff Usher researches and writes articles on all aspects of Internet Marketing and eCommerce. For further information on the subject of this article please visit:-
http://www.more-merchant-account.info
How to Find the Best Low APR Credit Cards
by: Morgan Hamilton
Low APR credit cards are much more prevalent than in years past. Competition is stiff and credit card financial institutions offer many nice perks, rewards, points, low annual percentage rates (APR) and other inducements. They want to capture new customers who've never had a credit card but also those who already have a credit card and might like to save money by transferring that card's balance on to their new low APR credit cards.
Of course, there is nothing lower in an APR than zero - and those exist too, although sometimes for a limited time period. It may be that the lowest, or even the zero percentage APR is for an introductory period, after which the rate is higher. The permanent APR is what you want to watch out for, of course. Although if you're not opposed to doing a lot of switching, you can always purchase a low APR credit card, or zero percentage APR credit card, transfer the balance from your current high APR credit card, and then, once the introductory time period has expired and the APR is about to go up on your newest credit card, transfer the balance yet again to a brand new low APR credit card.
Let's look at a few of the low APR credit cards out there, so you know what kinds of options are typically available to you.
Citibank, for example, offers low APR credit cards that give you five percent cash back on any purchase you making at grocery stores and gas stations with your low APR credit card, and one percent back for any purchase elsewhere. The APR on transfers is zero for the first year. If your transfer transaction is at least $1500 you will earn $5 cash back with the low APR credit card. There is no annual fee and the APR after the first year is 12.24 percent.
Discover has a platinum clear card whose low APR is continual. The first year the APR is zero, but after the first year it's still a very competitive 9.99 percent. And there is no annual fee. With these low APR credit cards you earn a five percent cash back bonus on purchases made from hardware and home improvement retailers, restaurants, book vendors, and gas stations. If the retailer doesn't qualify you for the five percent discount you will always get one percent back no matter what you buy and from where with this low APR credit card.
Chase Bank offers low APR credit cards as well. Its zero percent APR is good for six months, after which you will pay 10.49 percent. These low APR credit cards have no annual fee, and offer rewards at the rate of one point for every dollar spent with your Chase card. You can get free airline flights and hotel rooms, as well as cruises and auto rentals. This card also provides $500,000 worth of travel insurance for worldwide vacationing. You can also take advantage of a fifteen percent discount off a Hertz car rental with these low APR credit cards.
Low APR credit cards are much more prevalent than in years past. Competition is stiff and credit card financial institutions offer many nice perks, rewards, points, low annual percentage rates (APR) and other inducements. They want to capture new customers who've never had a credit card but also those who already have a credit card and might like to save money by transferring that card's balance on to their new low APR credit cards.
Of course, there is nothing lower in an APR than zero - and those exist too, although sometimes for a limited time period. It may be that the lowest, or even the zero percentage APR is for an introductory period, after which the rate is higher. The permanent APR is what you want to watch out for, of course. Although if you're not opposed to doing a lot of switching, you can always purchase a low APR credit card, or zero percentage APR credit card, transfer the balance from your current high APR credit card, and then, once the introductory time period has expired and the APR is about to go up on your newest credit card, transfer the balance yet again to a brand new low APR credit card.
Let's look at a few of the low APR credit cards out there, so you know what kinds of options are typically available to you.
Citibank, for example, offers low APR credit cards that give you five percent cash back on any purchase you making at grocery stores and gas stations with your low APR credit card, and one percent back for any purchase elsewhere. The APR on transfers is zero for the first year. If your transfer transaction is at least $1500 you will earn $5 cash back with the low APR credit card. There is no annual fee and the APR after the first year is 12.24 percent.
Discover has a platinum clear card whose low APR is continual. The first year the APR is zero, but after the first year it's still a very competitive 9.99 percent. And there is no annual fee. With these low APR credit cards you earn a five percent cash back bonus on purchases made from hardware and home improvement retailers, restaurants, book vendors, and gas stations. If the retailer doesn't qualify you for the five percent discount you will always get one percent back no matter what you buy and from where with this low APR credit card.
Chase Bank offers low APR credit cards as well. Its zero percent APR is good for six months, after which you will pay 10.49 percent. These low APR credit cards have no annual fee, and offer rewards at the rate of one point for every dollar spent with your Chase card. You can get free airline flights and hotel rooms, as well as cruises and auto rentals. This card also provides $500,000 worth of travel insurance for worldwide vacationing. You can also take advantage of a fifteen percent discount off a Hertz car rental with these low APR credit cards.
Accounts Receivable: How to Tame the Beast
You don't want to wrestle with Your accounts receivables - You just want to tame them.
If you take steps to manage your receivables by applying the right kind of pressure at the right time, the beast can be tamed. Following are seven steps:
The First Rule: Those who expect to get paid - get paid
In the administration and control of receivables, attitude counts. We've discovered that if you expect to get paid, and the other party knows it, and knows you'll take action if you are not paid, you will get paid.
It's simple: If you take it seriously, they'll take it seriously. On the other hand, if you treat receivables lightly, and allow your customers to take advantage of you, they will. What does "taking it seriously," mean? It means:
• Establishing policies and procedures that will help you make decisions as and easier.
• Making a commitment to properly train yourself and your employees in how to manage and collect receivables.
• Being certain your customers understand your terms and intentions.
• Understanding and using the tools and services that are available to you.
The Second Rule: Do Something Every Twenty Days
Nothing is more effective than a systematic, controlled approach to receivable management. Step-by-step procedures are the key:
We have had great results with a process we call the "Twenty Day Diary." Here's how it works:
• Day one, you make a sale, deliver products, and issue an invoice with terms set at NET 30 days.
• Twenty days later - ten days before the receivable is due - you call the customer. This is a pre-collection call that doubles as a service call.
• You ask if the order was received, if everything was satisfactory, if they have the invoice, and if they understand the terms.
• If there is a problem, you have a chance to fix it before the due date, and everybody is happy. If there is no problem, you know the customer is satisfied and is likely to pay on time, and the customer knows you care.
• The next call (if necessary) is then scheduled for twenty days after that - ten days after the due date. If a genuine problem has arisen, it's early enough to deal with it efficiently. But if your being stalled, you'll know that, too, and you can act accordingly.
The secret is to be systematic and organized. We call it the "Twenty Day Diary" because to make it work, you have to keep track. Write down what was said, when, by whom, every step of the way, and you can't go wrong.
If you take steps to manage your receivables by applying the right kind of pressure at the right time, the beast can be tamed. Following are seven steps:
The First Rule: Those who expect to get paid - get paid
In the administration and control of receivables, attitude counts. We've discovered that if you expect to get paid, and the other party knows it, and knows you'll take action if you are not paid, you will get paid.
It's simple: If you take it seriously, they'll take it seriously. On the other hand, if you treat receivables lightly, and allow your customers to take advantage of you, they will. What does "taking it seriously," mean? It means:
• Establishing policies and procedures that will help you make decisions as and easier.
• Making a commitment to properly train yourself and your employees in how to manage and collect receivables.
• Being certain your customers understand your terms and intentions.
• Understanding and using the tools and services that are available to you.
The Second Rule: Do Something Every Twenty Days
Nothing is more effective than a systematic, controlled approach to receivable management. Step-by-step procedures are the key:
We have had great results with a process we call the "Twenty Day Diary." Here's how it works:
• Day one, you make a sale, deliver products, and issue an invoice with terms set at NET 30 days.
• Twenty days later - ten days before the receivable is due - you call the customer. This is a pre-collection call that doubles as a service call.
• You ask if the order was received, if everything was satisfactory, if they have the invoice, and if they understand the terms.
• If there is a problem, you have a chance to fix it before the due date, and everybody is happy. If there is no problem, you know the customer is satisfied and is likely to pay on time, and the customer knows you care.
• The next call (if necessary) is then scheduled for twenty days after that - ten days after the due date. If a genuine problem has arisen, it's early enough to deal with it efficiently. But if your being stalled, you'll know that, too, and you can act accordingly.
The secret is to be systematic and organized. We call it the "Twenty Day Diary" because to make it work, you have to keep track. Write down what was said, when, by whom, every step of the way, and you can't go wrong.
Resource Center
Check out these articles and links for useful information on accounts receivable and credit management.
ExtraCredit Archive
Credit and Finance Associations
National Association of Credit Managers (NACM)
Credit Research Foundation (CRF)
Financial Executive International (FEI)
Association of Financial Professionals (AFP)
Credit, Finance and Bankruptcy Publications and Websites
Business Credit magazine
Business Finance magazine
Collections and Credit Risk magazine
www.creditnews.com
www.abiworld.org
www.bankruptcydata.com
www.creditinsurancenews.com
Business Information Services
Edgars Online
Dunn & Bradstreet
CreditRiskMonitor.com
www.ita.doc.gov - a comprehensive information source of government related information about export trade.
Additional Accounts Receivable Services
The ABC Companies
The ABC Companies provides a full array of cutting edge commercial debt collection services, credit and accounts receivable outsourcing and industry-specific credit information to their clients worldwide.
Please call us at 1-877-442-7475 or e-mail us if you have any difficulties with our links or if you would like to suggest a site.
ExtraCredit Archive
Credit and Finance Associations
National Association of Credit Managers (NACM)
Credit Research Foundation (CRF)
Financial Executive International (FEI)
Association of Financial Professionals (AFP)
Credit, Finance and Bankruptcy Publications and Websites
Business Credit magazine
Business Finance magazine
Collections and Credit Risk magazine
www.creditnews.com
www.abiworld.org
www.bankruptcydata.com
www.creditinsurancenews.com
Business Information Services
Edgars Online
Dunn & Bradstreet
CreditRiskMonitor.com
www.ita.doc.gov - a comprehensive information source of government related information about export trade.
Additional Accounts Receivable Services
The ABC Companies
The ABC Companies provides a full array of cutting edge commercial debt collection services, credit and accounts receivable outsourcing and industry-specific credit information to their clients worldwide.
Please call us at 1-877-442-7475 or e-mail us if you have any difficulties with our links or if you would like to suggest a site.
Protect your largest asset with credit insurance
The Benefits
Commercial credit insurance can be a valuable tool for managing your trade receivables. In today's dynamic business environment, companies like your own are under constant threat from the loss caused by the bankruptcy of a key customer. Even the best credit management cannot guarantee payment. By insuring your accounts, your payments are covered.
With your policy, you can:
- Protect your accounts receivable from loss due to insolvency or nonpayment
- Reduce reserves by creating a safety net against bad debt write-offs that could impact bottom-line earnings and equity
- Enhance receivables to create lending-insured collateral-an important feature for banks
- Supplement your credit management with third-party evaluations of your customers' credit risk and market monitoring of the countries and industries where you trade
When investing in a credit insurance policy, there are a number of factors you must consider:
- Type of policies
- Policy structure
- Additional policy features
Commercial credit insurance can be a valuable tool for managing your trade receivables. In today's dynamic business environment, companies like your own are under constant threat from the loss caused by the bankruptcy of a key customer. Even the best credit management cannot guarantee payment. By insuring your accounts, your payments are covered.
With your policy, you can:
- Protect your accounts receivable from loss due to insolvency or nonpayment
- Reduce reserves by creating a safety net against bad debt write-offs that could impact bottom-line earnings and equity
- Enhance receivables to create lending-insured collateral-an important feature for banks
- Supplement your credit management with third-party evaluations of your customers' credit risk and market monitoring of the countries and industries where you trade
When investing in a credit insurance policy, there are a number of factors you must consider:
- Type of policies
- Policy structure
- Additional policy features
Ordering International Credit Reports
Trade Risk Group is an authorized representative of Skyminder, a CRIBIS company that is a leading provider of credit reports and related services. Used by more than 10,000 companies and banking institutions throughout the world, Skyminder is unique in its field due to its ability to aggregate information sourced from many different internationally acclaimed providers and locally-based sources, and supplies online credit and business information on over 50 million companies in more than 230 countries. Skyminder's database of information includes:
Credit Information
Marketing Lists
Financials Industry Information
Company Profiles
Market Research
News
Investment Research
You can access Skyminder for single international credit reports by clicking on the link below. Once there, you will see a listing of the available choices for the information that you need, and you can pay by credit card. If you anticipate being a regular buyer of reports and/or other services and would like to be set up with Skyminder directly, or if you want to order a report but you do not want to pay by credit card, please contact Chris Drazek in our Service Center at 215.860.1900.
Credit Information
Marketing Lists
Financials Industry Information
Company Profiles
Market Research
News
Investment Research
You can access Skyminder for single international credit reports by clicking on the link below. Once there, you will see a listing of the available choices for the information that you need, and you can pay by credit card. If you anticipate being a regular buyer of reports and/or other services and would like to be set up with Skyminder directly, or if you want to order a report but you do not want to pay by credit card, please contact Chris Drazek in our Service Center at 215.860.1900.
Some explanations
In ideal risk management, a prioritization process is followed whereby the risks with the greatest loss and the greatest probability of occurring are handled first, and risks with lower probability of occurrence and lower loss are handled in descending order. In practice the process can be very difficult, and balancing between risks with a high probability of occurrence but lower loss versus a risk with high loss but lower probability of occurrence can often be mishandled.
Intangible risk management identifies a new type of risk - a risk that has a 100% probability of occurring but is ignored by the organization due to a lack of identification ability. For example, when deficient knowledge is applied to a situation, a knowledge risk materialises. Relationship risk appears when ineffective collaboration occurs. Process-engagement risk may be an issue when ineffective operational procedures are applied. These risks directly reduce the productivity of knowledge workers, decrease cost effectiveness, profitability, service, quality, reputation, brand value, and earnings quality. Intangible risk management allows risk management to create immediate value from the identification and reduction of risks that reduce productivity.
Risk management also faces difficulties allocating resources. This is the idea of opportunity cost. Resources spent on risk management could have been spent on more profitable activities. Again, ideal risk management minimizes spending while maximizing the reduction of the negative effects of risks.
Intangible risk management identifies a new type of risk - a risk that has a 100% probability of occurring but is ignored by the organization due to a lack of identification ability. For example, when deficient knowledge is applied to a situation, a knowledge risk materialises. Relationship risk appears when ineffective collaboration occurs. Process-engagement risk may be an issue when ineffective operational procedures are applied. These risks directly reduce the productivity of knowledge workers, decrease cost effectiveness, profitability, service, quality, reputation, brand value, and earnings quality. Intangible risk management allows risk management to create immediate value from the identification and reduction of risks that reduce productivity.
Risk management also faces difficulties allocating resources. This is the idea of opportunity cost. Resources spent on risk management could have been spent on more profitable activities. Again, ideal risk management minimizes spending while maximizing the reduction of the negative effects of risks.
Self insurance
Self insurance is a risk management method whereby an eligible risk is retained, but a calculated amount of money is set aside to compensate for the potential future loss. The amount is calculated using actuarial and insurance information and the law of large numbers so that the amount set aside (similar to an insurance premium) is enough to cover the future uncertain loss. Self insurance is similar to insurance in concept, but involves either the payment of a self-insurance premium to a captive insurance company, cell captive or rent-a-captive insurer, or making an on-balance sheet provision and not paying a premium to an insurer at all.
Self insurance is possible for any insurable risk, meaning a risk that is predictable and measurable enough in the aggregate to be able to estimate the amount that needs to be set aside to pay for future uncertain probable losses. For a risk to be insurable, it must represent a future, uncertain event over which the insured has no control. Other characteristics which assist in making a risk self-insurable include the ability to price or rate the risk. If the insurable event is one in a large number of similar risks, the aggregate risk can be estimated according to the law of large numbers and the probability of that event occurring in the future can be quantified. Normally, catastrophic risks are not self-insured as they are highly unpredictable and high in loss-value. Catastrophic risks are normally underwritten by the re-insurance or wholesale insurance market. Any risk where the potential loss is so large that no one could afford to pay the market premium required to provide cover would not be commercially insurable. An example is that earthquakes cannot be fully insured against because an earthquake can cause more damage than any insurer or the combined insurance market is willing to risk in total assets. However, captives and self-insurance programmes are often designed to provide for a part of a risk that would be catastrophic to the business concerned, or catastrophic risks that are often commercially uninsurable, such as tobacco litigation liability risks.
Full or exclusive self-insurance is rare, as a combination of self-insurance and commercial insurance usually provides the best cover for the self-insured. Usually the predictable losses of the risk are retained and self-insured, forming a first or "working" layer of cover, and a stop-loss or stop-gap policy is purchased from the commercial insurance market. The commercial insurance market then pays for losses above the specified self-insurance limit per loss, thereby stopping the cost of losses to the self-insured above the retained values. Effectively the losses paid for by the insured before the stop-loss policy pays becomes the deductible layer. Depending on the level at which risks are stopped, commercial insurance cover should become less and less expensive the further away the commercial insurer moves from the working layer of paying claims each year.
A popular and cost-effective form of self-insurance can be found in various types of employee benefits insurance offered by corporations with many thousands of employees. Employee benefits self-insurance programmes are often underwritten by captive insurance companies formed, owned and managed by corporations in both on-shore and off-shore captive domiciles. The reason for this is that hundreds of thousands of employees constitute a large enough risk pool for the corporation to be able to predict and price the risk of losses from benefits offered to employees. In this way, corporations are able to manage their financial exposure to the self-insurance programme without buying commercial insurance.
The idea of self insurance is that by retaining, calculating risks, and paying the resulting claims or losses from captive or on-balance sheet financial provisions, the overall process is cheaper than buying commercial insurance from a commercial insurance company. Cost savings to the self-insured entity are usually realised through the elimination of the carrying-costs that commercial insurers are obliged to pass on to their insurance consumers.
Another example of this is a self-funded health care plan under which a smaller employer helps finance the health care costs of its employees by contracting with a Third Party Administrator (TPA) to administer many aspects of the plan. The employer may also contract with a reinsurer to pay amounts in excess of a certain threshold, in order to share the risk for potential catastrophic claims experience.
Self insurance is less readily available for individuals because individuals rarely gain sufficient cost-savings on small premiums to justify specialised self-insurance captives, interventions and negotiations with insurers. However, many small businesses are now using self-insurance mechanisms such as cell captives and rent-a-captives with considerable success
Self insurance is possible for any insurable risk, meaning a risk that is predictable and measurable enough in the aggregate to be able to estimate the amount that needs to be set aside to pay for future uncertain probable losses. For a risk to be insurable, it must represent a future, uncertain event over which the insured has no control. Other characteristics which assist in making a risk self-insurable include the ability to price or rate the risk. If the insurable event is one in a large number of similar risks, the aggregate risk can be estimated according to the law of large numbers and the probability of that event occurring in the future can be quantified. Normally, catastrophic risks are not self-insured as they are highly unpredictable and high in loss-value. Catastrophic risks are normally underwritten by the re-insurance or wholesale insurance market. Any risk where the potential loss is so large that no one could afford to pay the market premium required to provide cover would not be commercially insurable. An example is that earthquakes cannot be fully insured against because an earthquake can cause more damage than any insurer or the combined insurance market is willing to risk in total assets. However, captives and self-insurance programmes are often designed to provide for a part of a risk that would be catastrophic to the business concerned, or catastrophic risks that are often commercially uninsurable, such as tobacco litigation liability risks.
Full or exclusive self-insurance is rare, as a combination of self-insurance and commercial insurance usually provides the best cover for the self-insured. Usually the predictable losses of the risk are retained and self-insured, forming a first or "working" layer of cover, and a stop-loss or stop-gap policy is purchased from the commercial insurance market. The commercial insurance market then pays for losses above the specified self-insurance limit per loss, thereby stopping the cost of losses to the self-insured above the retained values. Effectively the losses paid for by the insured before the stop-loss policy pays becomes the deductible layer. Depending on the level at which risks are stopped, commercial insurance cover should become less and less expensive the further away the commercial insurer moves from the working layer of paying claims each year.
A popular and cost-effective form of self-insurance can be found in various types of employee benefits insurance offered by corporations with many thousands of employees. Employee benefits self-insurance programmes are often underwritten by captive insurance companies formed, owned and managed by corporations in both on-shore and off-shore captive domiciles. The reason for this is that hundreds of thousands of employees constitute a large enough risk pool for the corporation to be able to predict and price the risk of losses from benefits offered to employees. In this way, corporations are able to manage their financial exposure to the self-insurance programme without buying commercial insurance.
The idea of self insurance is that by retaining, calculating risks, and paying the resulting claims or losses from captive or on-balance sheet financial provisions, the overall process is cheaper than buying commercial insurance from a commercial insurance company. Cost savings to the self-insured entity are usually realised through the elimination of the carrying-costs that commercial insurers are obliged to pass on to their insurance consumers.
Another example of this is a self-funded health care plan under which a smaller employer helps finance the health care costs of its employees by contracting with a Third Party Administrator (TPA) to administer many aspects of the plan. The employer may also contract with a reinsurer to pay amounts in excess of a certain threshold, in order to share the risk for potential catastrophic claims experience.
Self insurance is less readily available for individuals because individuals rarely gain sufficient cost-savings on small premiums to justify specialised self-insurance captives, interventions and negotiations with insurers. However, many small businesses are now using self-insurance mechanisms such as cell captives and rent-a-captives with considerable success
Fidelity bond
From Wikipedia, the free encyclopedia
Jump to: navigation, search
A fidelity bond is a form of protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees.
While called bonds, these obligations to protect an employer from employee-dishonesty losses are really insurance policies. These insurance policies protect from losses of company monies, securities, and other property from employees who have a manifest intent to cause the company loss. There are also many other forms of crime-insurance policies (burglary, fire, general theft, computer theft, disappearance, fraud, forgery, etc.) to protect company assets.
Jump to: navigation, search
A fidelity bond is a form of protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees.
While called bonds, these obligations to protect an employer from employee-dishonesty losses are really insurance policies. These insurance policies protect from losses of company monies, securities, and other property from employees who have a manifest intent to cause the company loss. There are also many other forms of crime-insurance policies (burglary, fire, general theft, computer theft, disappearance, fraud, forgery, etc.) to protect company assets.
Credit insurance reduces your risk without increasing your effort
Get the best credit insurance policy for your business needs
Credit insurance is a valuable tool for managing your accounts receivable. Credit insurance protects your business from bad debt due to nonpayment from your clients. It allows you to offer open credit terms to new accounts without taxing your credit risk management department. Export credit insurance and political risk insurance can help you trade more effectively worldwide. Credit Insurance may even provide credit enhancement by helping you obtain better financing terms.
Finding the credit insurance policy that's right for your company can be a long and complex process. Trade Risk Group makes credit insurance easy!
High quality service with decades of experience
Put Trade Risk Group's 40+ years of combined experience to work for you at no additional cost. \ Whether your U.S. business is a small, privately owned company needing simple trade risk insurance or a large multinational firm seeking export credit insurance to increase your overseas sales, we have the expertise you want to get the best policy to meet your needs.
Trade Risk Group will:
- Evaluate your needs to determine the best credit insurance program.
- Get multiple quotes with only one application.
Once your policy is in place, we will:
- Help clarify policy language.
- Work with you and the accounts receivable insurance underwriters to get new credit limits, add new buyers or process claims.
- Make credit insurance easy. Trade Risk Group will be there to assist with any policy difficulties.
As a specialist credit insurance broker, we work with the best insurance companies to provide customized, state-of-the-art solutions to your trade risk problems and credit insurance needs. To learn more about how Trade Risk Group can help you, call us toll free at 1-877-442-7475 or click here.
Credit insurance is a valuable tool for managing your accounts receivable. Credit insurance protects your business from bad debt due to nonpayment from your clients. It allows you to offer open credit terms to new accounts without taxing your credit risk management department. Export credit insurance and political risk insurance can help you trade more effectively worldwide. Credit Insurance may even provide credit enhancement by helping you obtain better financing terms.
Finding the credit insurance policy that's right for your company can be a long and complex process. Trade Risk Group makes credit insurance easy!
High quality service with decades of experience
Put Trade Risk Group's 40+ years of combined experience to work for you at no additional cost. \ Whether your U.S. business is a small, privately owned company needing simple trade risk insurance or a large multinational firm seeking export credit insurance to increase your overseas sales, we have the expertise you want to get the best policy to meet your needs.
Trade Risk Group will:
- Evaluate your needs to determine the best credit insurance program.
- Get multiple quotes with only one application.
Once your policy is in place, we will:
- Help clarify policy language.
- Work with you and the accounts receivable insurance underwriters to get new credit limits, add new buyers or process claims.
- Make credit insurance easy. Trade Risk Group will be there to assist with any policy difficulties.
As a specialist credit insurance broker, we work with the best insurance companies to provide customized, state-of-the-art solutions to your trade risk problems and credit insurance needs. To learn more about how Trade Risk Group can help you, call us toll free at 1-877-442-7475 or click here.
Life insurance
Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium. In the United States, the predominant form simply specifies a lump sum to be paid on the insured's demise.
As with most insurance policies, life insurance is a contract between the insurer and the policy owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or Beneficiaries) if an insured event occurs which is covered by the policy. To be a life policy the insured event must be based upon life (or lives) of the people named in the policy.
Insured events that may be covered include:
Serious illness
Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; for example claims relating to suicide, fraud, war, riot and civil commotion.
Life based contracts tend to fall into two major categories:
Protection policies - designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance.
Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US anyway) are whole life, universal life and variable life policies
As with most insurance policies, life insurance is a contract between the insurer and the policy owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or Beneficiaries) if an insured event occurs which is covered by the policy. To be a life policy the insured event must be based upon life (or lives) of the people named in the policy.
Insured events that may be covered include:
Serious illness
Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; for example claims relating to suicide, fraud, war, riot and civil commotion.
Life based contracts tend to fall into two major categories:
Protection policies - designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance.
Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US anyway) are whole life, universal life and variable life policies
Brokerage Service Providers
Credit Insurance is said to be a broker driven business. Brokers mainly help in creating market competition between different insurers for better premium pricing and policy wordings for policy holders. Brokers also help policy holders to comply with the policy wordings in order to ensure smooth claiming process, if any.
Leading credit insurance brokers include:
Alexander Leed (Taiwan) [14]
AON (Global) [15]
AU Group (Global) [16]
Business Credit Insurance (U S Domestic & Export) [17]
Export Credit Management (Hong Kong) [18]
Guangdong Jinhai Insurance Broker Co., Ltd (China) [19]
ICBA (Global) [20]
IRC (Global) [21]
Marsh (Global) [22]
NCI (Australia) [23]
Willis (Global) [24]
Leading credit insurance brokers include:
Alexander Leed (Taiwan) [14]
AON (Global) [15]
AU Group (Global) [16]
Business Credit Insurance (U S Domestic & Export) [17]
Export Credit Management (Hong Kong) [18]
Guangdong Jinhai Insurance Broker Co., Ltd (China) [19]
ICBA (Global) [20]
IRC (Global) [21]
Marsh (Global) [22]
NCI (Australia) [23]
Willis (Global) [24]
Credit insurance
Credit Insurance is a term used to describe both Trade Credit Insurance and Credit Life Insurance.
Credit Life Insurance is a consumer purchase, often sold with a big ticket purchase such as an automobile. The insurance will pay off the loan balance in the event of the death or the disability of the borrower. Although purchased by the consumer/borrower, the benefit payment goes to the company financing the purchase to satisfy a debt.
Credit Insurance or Trade Credit Insurance is an insurance policy and risk management product that covers the payment risk resulting from the delivery of goods or services. Credit insurance usually covers a portfolio of buyers and pays an agreed percentage of an invoice or receivable that remains unpaid as a result of protracted default, insolvency or bankruptcy. Trade Credit Insurance is purchased by business entities to insure their accounts receivable from loss due to the insolvency of the debtors. This product is not available to private individuals.
The costs (called a "premium") for this are usually charged monthly, and are calculated as a percentage of sales of that month or as a percentage of all outstanding receivables.
Credit insurance insures the payment risk of companies, not of private individuals. Policy holders require a credit limit on each of their buyers for the sales to that buyer to be insured. The premium rate is usually low and reflects the average credit risk of the insured portfolio of buyers.
In addition, credit insurance can also cover single transactions or trade with only one buyer.
Credit Life Insurance is a consumer purchase, often sold with a big ticket purchase such as an automobile. The insurance will pay off the loan balance in the event of the death or the disability of the borrower. Although purchased by the consumer/borrower, the benefit payment goes to the company financing the purchase to satisfy a debt.
Credit Insurance or Trade Credit Insurance is an insurance policy and risk management product that covers the payment risk resulting from the delivery of goods or services. Credit insurance usually covers a portfolio of buyers and pays an agreed percentage of an invoice or receivable that remains unpaid as a result of protracted default, insolvency or bankruptcy. Trade Credit Insurance is purchased by business entities to insure their accounts receivable from loss due to the insolvency of the debtors. This product is not available to private individuals.
The costs (called a "premium") for this are usually charged monthly, and are calculated as a percentage of sales of that month or as a percentage of all outstanding receivables.
Credit insurance insures the payment risk of companies, not of private individuals. Policy holders require a credit limit on each of their buyers for the sales to that buyer to be insured. The premium rate is usually low and reflects the average credit risk of the insured portfolio of buyers.
In addition, credit insurance can also cover single transactions or trade with only one buyer.
Saturday, July 5, 2008
Loan Payment Protection Insurance
Loan payment protection insurance is the broadest cover in a portfolio of insurance products known as payment protection insurance (PPI). Loan protection insurance provides a tax free sum for people who become displaced from work due to involuntary redundancy, extended illness, or accident. Loan payment assists through monthly instilments over a benefit payout period which will be anything from 12 to 24 months. For many people who have loan commitments to meet, loan protection insurance cover can help them meet their debts without financial worry or stress.
Loan insurance does not typically replace one hundred per cent of normal monthly income for the insured person, but it does cover a very significant portion – up to the providers set limits of course. The purpose of loan cover is to help Brits faced with growing loan debt and credit card debt to meet their monthly loan obligations. Maintaining their credit rating and keeping up with secured loans are important during periods of lost job income or when they are recuperating from an accident or illness.
Loan payment insurance is often sold in combination with loan products by many High Street lenders and banks, which has actually led to some common mis-selling practices. This has, however, brought to light the advantages of buying payment protection on the open market through an independent provider, such as the ethical British Insurance.
They can offer loan payment protection insurance at up to 80% less than the policies on the High Street, often with additional benefits such as the cover being back dated to the first day or unemployment or incapacity.
Their cost savings and comprehensive cover is also available with the other products in the p[payment protection insurance portfolio. There are two other common types of payment insurance that, along with loan payment protection insurance, make up the payment protection umbrella. Each of the three standard protections offer the same core benefits and cover the same events, but their purposes and features are a bit different. The idea behind these plans is to offer people a chance to secure their finances during periods of prolonged unemployment in lieu of little or no State support.
The second type of payment cover, mortgage payment protection insurance, is very similar in nature to the loan insurance. However, the mortgage payment protection is primarily designed to help homeowners meet their most important debt obligation. Homeowners that fail to meet mortgage obligations risk repossession of their property by the lender. Mortgage payment cover does not replace the entire lost income, but it does help many people hold onto their homes when they might otherwise lose them. As with the loan payment protection insurance, mortgage insurance is routinely sold in combination with mortgage products by lenders, often at a very high cost. Cue, independent provider British Insurance.
The third product of the payment cover portfolio is income payment protection insurance. This payment plan is simply intended to offset a sizable portion of the lost income. It does not replace the full income, but it does help sustain many people while they deal with illness, injury, or the job search process. Again, the core benefits and covered events of income payment are similar to the other types of protection.
Consumers have long been unfamiliar and unknowledgeable about the loan cover and payment insurance industry because banks and High Street lenders have controlled the industry. These institutions have often pressured or deceived consumers into taking on their expensive premium products. Some lenders pressure borrowers into believing they have to buy payment protection to secure their desired loan. Others simply build the insurance premiums into the loan repayment to hide the expensive premiums. By doing this, they can spread the costs over time so they are less detectable to the borrower. Borrowers often pay thousands in premiums over time, without even realizing they are protected. Consumers need to read the fine print of disclosure documents.
Another mis-selling tactic employed by some sellers has been the selling of payment insurance to retired people, part time employees, and people with preexisting medical conditions. All these groups are in most cases ineligible to receive benefit payouts based on plan exclusions.
Leading consumer advocate group, Citizen’s Advice, brought the aforementioned mis-selling practices before the Office of Fair Trading (OFT) recently through a super complaint. The complaint alleged that these selling tactics hindered fair competition in the payment insurance marketplace. As a result the OFT and Financial Services Authority (FSA) conducted investigations. The FSA concluded its investigation by imposing fines and sanctions on institutions it felt had used unfair selling. The OFT appointed the Competition Commission to further review the industry and is awaiting the report on its findings which are due in early 2009
The big benefit to consumers of the industry attention is that more people are aware of what they need to look out for as well as consider when buying loan insurance. The advantages of buying loan protection and mortgage protection on the open market through an independent insurance specialist like payment protection provider British Insurance have been strongly publicised in the media.
With a reputation for ethical business practices and award winning protection insurance products, British insurance is a good choice when choosing loan insurance as well as other payment protection insurance cover.
Obtaining a loan protection quote, mortgage protection quote, or income payment protection quote is simple and cover costs just from a few thousands for every £100-worth of cover required. With the low cost opportunities presented by standalone providers, there is no reason to avoid protection for oneself and his or her family.
Loan payment protection insurance can help someone who has lost their income through no fault of their own continue to meet their monthly repayment commitments, hassle free, leaving them to focus on getting a new job or recovering from illness.
Loan insurance does not typically replace one hundred per cent of normal monthly income for the insured person, but it does cover a very significant portion – up to the providers set limits of course. The purpose of loan cover is to help Brits faced with growing loan debt and credit card debt to meet their monthly loan obligations. Maintaining their credit rating and keeping up with secured loans are important during periods of lost job income or when they are recuperating from an accident or illness.
Loan payment insurance is often sold in combination with loan products by many High Street lenders and banks, which has actually led to some common mis-selling practices. This has, however, brought to light the advantages of buying payment protection on the open market through an independent provider, such as the ethical British Insurance.
They can offer loan payment protection insurance at up to 80% less than the policies on the High Street, often with additional benefits such as the cover being back dated to the first day or unemployment or incapacity.
Their cost savings and comprehensive cover is also available with the other products in the p[payment protection insurance portfolio. There are two other common types of payment insurance that, along with loan payment protection insurance, make up the payment protection umbrella. Each of the three standard protections offer the same core benefits and cover the same events, but their purposes and features are a bit different. The idea behind these plans is to offer people a chance to secure their finances during periods of prolonged unemployment in lieu of little or no State support.
The second type of payment cover, mortgage payment protection insurance, is very similar in nature to the loan insurance. However, the mortgage payment protection is primarily designed to help homeowners meet their most important debt obligation. Homeowners that fail to meet mortgage obligations risk repossession of their property by the lender. Mortgage payment cover does not replace the entire lost income, but it does help many people hold onto their homes when they might otherwise lose them. As with the loan payment protection insurance, mortgage insurance is routinely sold in combination with mortgage products by lenders, often at a very high cost. Cue, independent provider British Insurance.
The third product of the payment cover portfolio is income payment protection insurance. This payment plan is simply intended to offset a sizable portion of the lost income. It does not replace the full income, but it does help sustain many people while they deal with illness, injury, or the job search process. Again, the core benefits and covered events of income payment are similar to the other types of protection.
Consumers have long been unfamiliar and unknowledgeable about the loan cover and payment insurance industry because banks and High Street lenders have controlled the industry. These institutions have often pressured or deceived consumers into taking on their expensive premium products. Some lenders pressure borrowers into believing they have to buy payment protection to secure their desired loan. Others simply build the insurance premiums into the loan repayment to hide the expensive premiums. By doing this, they can spread the costs over time so they are less detectable to the borrower. Borrowers often pay thousands in premiums over time, without even realizing they are protected. Consumers need to read the fine print of disclosure documents.
Another mis-selling tactic employed by some sellers has been the selling of payment insurance to retired people, part time employees, and people with preexisting medical conditions. All these groups are in most cases ineligible to receive benefit payouts based on plan exclusions.
Leading consumer advocate group, Citizen’s Advice, brought the aforementioned mis-selling practices before the Office of Fair Trading (OFT) recently through a super complaint. The complaint alleged that these selling tactics hindered fair competition in the payment insurance marketplace. As a result the OFT and Financial Services Authority (FSA) conducted investigations. The FSA concluded its investigation by imposing fines and sanctions on institutions it felt had used unfair selling. The OFT appointed the Competition Commission to further review the industry and is awaiting the report on its findings which are due in early 2009
The big benefit to consumers of the industry attention is that more people are aware of what they need to look out for as well as consider when buying loan insurance. The advantages of buying loan protection and mortgage protection on the open market through an independent insurance specialist like payment protection provider British Insurance have been strongly publicised in the media.
With a reputation for ethical business practices and award winning protection insurance products, British insurance is a good choice when choosing loan insurance as well as other payment protection insurance cover.
Obtaining a loan protection quote, mortgage protection quote, or income payment protection quote is simple and cover costs just from a few thousands for every £100-worth of cover required. With the low cost opportunities presented by standalone providers, there is no reason to avoid protection for oneself and his or her family.
Loan payment protection insurance can help someone who has lost their income through no fault of their own continue to meet their monthly repayment commitments, hassle free, leaving them to focus on getting a new job or recovering from illness.
Citi® Identity Theft Solutions1
Also known as identity fraud, identity theft happens when someone uses another person's personal information to commit theft. This information may be as simple as a name, address and date of birth, or as detailed as a Social Security number, or a mother's maiden name. Identity thieves use this information to open credit card accounts, obtain loans, drain bank accounts and more.
This rapidly growing crime affects more and more people every day. That's why we created Citi® Identity Theft Solutions to help you resolve the matter and get your life back on track.
Paperless Statements
Receive monthly statements online only and get instant access to your last 6 statements. Less paper in the mail means less chance of your sensitive information ending up in the wrong hands. Just register or sign on to Account Online to start receiving Paperless Statements.
Fraud Early Warning
We understand how important security is when it comes to your credit card. That's why we've established Fraud Early Warning. If we notice any unusual activity on your account, we'll contact you to verify the charges. If you believe your account may have been used fraudulently, please call us at 1-800-950-5114.
This rapidly growing crime affects more and more people every day. That's why we created Citi® Identity Theft Solutions to help you resolve the matter and get your life back on track.
Paperless Statements
Receive monthly statements online only and get instant access to your last 6 statements. Less paper in the mail means less chance of your sensitive information ending up in the wrong hands. Just register or sign on to Account Online to start receiving Paperless Statements.
Fraud Early Warning
We understand how important security is when it comes to your credit card. That's why we've established Fraud Early Warning. If we notice any unusual activity on your account, we'll contact you to verify the charges. If you believe your account may have been used fraudulently, please call us at 1-800-950-5114.
Your Money; Insurance Benefit: Low-Cost Loans
LEAD: When unexpected bills start to pile up, many financial advisers recommend that hard-pressed families take out a low-cost loan on their life insurance. Policyholders can borrow against 75 percent to 90 percent of the cash value of a life insurance policy and can even forgo repaying the loan and interest if they are willing to reduce insurance benefits.
When unexpected bills start to pile up, many financial advisers recommend that hard-pressed families take out a low-cost loan on their life insurance. Policyholders can borrow against 75 percent to 90 percent of the cash value of a life insurance policy and can even forgo repaying the loan and interest if they are willing to reduce insurance benefits.
''A lot of people forget they can borrow from their life insurance when they need money for a child's education or an emergency,'' said Gary Riedlinger, senior manager at the accounting firm of Price Waterhouse, in Boston.
Borrowing on existing policies can be advantageous because the interest rates are usually lower than those for other types of loans. Rates on insurance loans range from 5 to 10 percent. But borrowers will pay about 15 to 20 percent for unsecured personal loans and about 13.5 percent, or prime plus 2 percent, for secured loans.
Loans are available on life insurance policies that have a cash value. Whole-life, universal-life, single-premium and variable-rate policies build up cash values because part of the premiums go into investment or savings plans. But loans cannot be taken out on term policies, which have no cash value because the premiums go only for insurance.
Along with low interest rates, life insurance loans have two attractive features that cannot be matched by other types of loans. An insurance loan does not have to be repaid. The principal can be subtracted from death benefits paid to survivors when the insured dies. And policyholders can choose to let the interest accrue as additional debt, rather than pay it off each year. Alan Lavine is a Boston-based financial writer. John Wilkinson, vice president at the Cigna Corporation, in Hartford, said policyholders were not required to repay the loan principal within any specific time. Though it is prudent to pay back the loan interest, policyholders can choose to have the insurance company automatically roll over the amount of interest owed so that it, too, is eventually subtracted from the death benefits.
But if full insurance coverage is needed for the future, Mr. Wilkinson said, it is best to pay back the interest and principal on the loan. For example, if an $8,000 loan on a $100,000 policy with $10,000 of cash value was not repaid, the beneficiary would receive $92,000 when the insured person died. If the policyholder decided to roll over $800 of loan interest in the form of debt, the death benefits paid out would be reduced to $91,200.
William Brownlie, author of ''The Life Insurance Buyer's Guide,'' published by McGraw-Hill Inc., said people should set up a cash emergency fund as part of their financial plans so they do not have to borrow on their life insurance. ''You are mortgaging the future when you borrow constantly and fail to pay back the loan,'' he said.
Obtaining a policy loan is easy. Many insurance companies will process a loan upon verbal notification within three to five days. Other companies may require that policyholders fill out a request form to get a loan. After the insurance company receives the written request, the money is usually sent out to the policyholder in about a week.
Mr. Riedlinger said that in most cases the loan proceeds were not not considered taxable income. There is an exception, however. Under the Technical Corrections Act of 1988, borrowers may have to pay income tax on some policy loans if the premium payments are higher than those required by the insurance company. With single-premium insurance, for example, a policyholder must make equal premium payments over seven years to borrow money without paying taxes. If he makes higher payments than the company requires, the insurance loan is considered to be a cash distribution and would be taxable.
When unexpected bills start to pile up, many financial advisers recommend that hard-pressed families take out a low-cost loan on their life insurance. Policyholders can borrow against 75 percent to 90 percent of the cash value of a life insurance policy and can even forgo repaying the loan and interest if they are willing to reduce insurance benefits.
''A lot of people forget they can borrow from their life insurance when they need money for a child's education or an emergency,'' said Gary Riedlinger, senior manager at the accounting firm of Price Waterhouse, in Boston.
Borrowing on existing policies can be advantageous because the interest rates are usually lower than those for other types of loans. Rates on insurance loans range from 5 to 10 percent. But borrowers will pay about 15 to 20 percent for unsecured personal loans and about 13.5 percent, or prime plus 2 percent, for secured loans.
Loans are available on life insurance policies that have a cash value. Whole-life, universal-life, single-premium and variable-rate policies build up cash values because part of the premiums go into investment or savings plans. But loans cannot be taken out on term policies, which have no cash value because the premiums go only for insurance.
Along with low interest rates, life insurance loans have two attractive features that cannot be matched by other types of loans. An insurance loan does not have to be repaid. The principal can be subtracted from death benefits paid to survivors when the insured dies. And policyholders can choose to let the interest accrue as additional debt, rather than pay it off each year. Alan Lavine is a Boston-based financial writer. John Wilkinson, vice president at the Cigna Corporation, in Hartford, said policyholders were not required to repay the loan principal within any specific time. Though it is prudent to pay back the loan interest, policyholders can choose to have the insurance company automatically roll over the amount of interest owed so that it, too, is eventually subtracted from the death benefits.
But if full insurance coverage is needed for the future, Mr. Wilkinson said, it is best to pay back the interest and principal on the loan. For example, if an $8,000 loan on a $100,000 policy with $10,000 of cash value was not repaid, the beneficiary would receive $92,000 when the insured person died. If the policyholder decided to roll over $800 of loan interest in the form of debt, the death benefits paid out would be reduced to $91,200.
William Brownlie, author of ''The Life Insurance Buyer's Guide,'' published by McGraw-Hill Inc., said people should set up a cash emergency fund as part of their financial plans so they do not have to borrow on their life insurance. ''You are mortgaging the future when you borrow constantly and fail to pay back the loan,'' he said.
Obtaining a policy loan is easy. Many insurance companies will process a loan upon verbal notification within three to five days. Other companies may require that policyholders fill out a request form to get a loan. After the insurance company receives the written request, the money is usually sent out to the policyholder in about a week.
Mr. Riedlinger said that in most cases the loan proceeds were not not considered taxable income. There is an exception, however. Under the Technical Corrections Act of 1988, borrowers may have to pay income tax on some policy loans if the premium payments are higher than those required by the insurance company. With single-premium insurance, for example, a policyholder must make equal premium payments over seven years to borrow money without paying taxes. If he makes higher payments than the company requires, the insurance loan is considered to be a cash distribution and would be taxable.
Overseas Education Loan
Studying abroad involves significant expenses that you may be not able to bear while you are a student.
To finance your studies abroad we have designed a creative and flexible solution, offering you a long repayment plan and low interest rate.
Loan Amount
Get a loan up to MOP 300,000.00 or 12 times the monthly salary of the borrower or the guarantor, whichever is the lowest.
Term
Select between two options:
Instant Repayment Plan : number of years of the course plus a maximum of 2 extra years, with a maximum of 6 years.
Deferred Principal Repayment Plan : maximum of 8 years, with interest payment during the study period and, thereafter, principal plus interest.
Interest Rate
Interest rate based on prime rate.
Documentation Required
School acceptance notice
Student Program + School fees billing information
To finance your studies abroad we have designed a creative and flexible solution, offering you a long repayment plan and low interest rate.
Loan Amount
Get a loan up to MOP 300,000.00 or 12 times the monthly salary of the borrower or the guarantor, whichever is the lowest.
Term
Select between two options:
Instant Repayment Plan : number of years of the course plus a maximum of 2 extra years, with a maximum of 6 years.
Deferred Principal Repayment Plan : maximum of 8 years, with interest payment during the study period and, thereafter, principal plus interest.
Interest Rate
Interest rate based on prime rate.
Documentation Required
School acceptance notice
Student Program + School fees billing information
Consumer Loans
If you need a housing loan or to finance the education of your children, extra-money to purchase furniture for your home, buy a car, pay for holiday expenses or buy any other good or services, BNU has the solution for your requirement.
Apply for a Credit Pass, the simplest and easiest way for you to get credit and feel relaxed.
Visit one of our branches or call our customer service hotline at 2833 5533 for further information.
Credit Card General Benefits
Discount from Different Stores
From time to time, you will receive BNU News, a newsletter informing you about some benefits or promotion programs offered by different stores for our credit card holders. These programs and benefits are updated regularly on BNU News and other promotional materials.
Gift Redemption
You may redeem your bonus points in cash or alternatively in several gift items that are shown on the quarterly BNU News or other promotional materials.
Purchase Protection Plan
Every purchase you make with your BNU Gold or Classic Credit Card anywhere in the world is automatically insured up to MOP20,000 against damage, loss or theft with the protection period of 30 days starting from the date the transaction took place. BNU Platinum Credit cardholders have their purchases insured up to MOP40,000 and for a 60-days period.
Instalment Program
Many stores which accept BNU Credit Card allow purchases to be paid by instalments (from 6 to 12 months). The name of these stores will be updated from time to time. You can call our service hotline for more details.
Extra Credit Limit Increase Service
Whenever you need extra credit line for whatever purpose, you may call our 24-hrs Customer Service Hotline to ask for temporary increase your credit limit. We make sure that you have the highest possible flexibility to handle your purchases.
Interest-free Repayment Period-8 weeks
From your statement day, you have 26 days to make you repayment to your BNU Credit Card account. In another words, you can have an interest free period of up to 8 weeks from the day you make the purchase with BNU Credit Card.
Flexible Repayment
You may choose not to pay in full the balance of your Card account. You may pay any amount between the minimum payment amount (3% of the statement balance or MOP100) and the entire statement balance. When you choose not to pay the full balance, a Finance Charge will be calculated at 2.5% per month on the daily unpaid balance.
From time to time, you will receive BNU News, a newsletter informing you about some benefits or promotion programs offered by different stores for our credit card holders. These programs and benefits are updated regularly on BNU News and other promotional materials.
Gift Redemption
You may redeem your bonus points in cash or alternatively in several gift items that are shown on the quarterly BNU News or other promotional materials.
Purchase Protection Plan
Every purchase you make with your BNU Gold or Classic Credit Card anywhere in the world is automatically insured up to MOP20,000 against damage, loss or theft with the protection period of 30 days starting from the date the transaction took place. BNU Platinum Credit cardholders have their purchases insured up to MOP40,000 and for a 60-days period.
Instalment Program
Many stores which accept BNU Credit Card allow purchases to be paid by instalments (from 6 to 12 months). The name of these stores will be updated from time to time. You can call our service hotline for more details.
Extra Credit Limit Increase Service
Whenever you need extra credit line for whatever purpose, you may call our 24-hrs Customer Service Hotline to ask for temporary increase your credit limit. We make sure that you have the highest possible flexibility to handle your purchases.
Interest-free Repayment Period-8 weeks
From your statement day, you have 26 days to make you repayment to your BNU Credit Card account. In another words, you can have an interest free period of up to 8 weeks from the day you make the purchase with BNU Credit Card.
Flexible Repayment
You may choose not to pay in full the balance of your Card account. You may pay any amount between the minimum payment amount (3% of the statement balance or MOP100) and the entire statement balance. When you choose not to pay the full balance, a Finance Charge will be calculated at 2.5% per month on the daily unpaid balance.
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